Coronavirus and Bankruptcy: Is There a Medical Bankruptcy?

Posted by Wesley Scott on April 8, 2020 at 4:49 PM
Wesley Scott

Every once in a while I get asked if there is such a thing as a medical bankruptcy? Well, not really. I mean yes, you can file bankruptcy on medical bills, but there is no “medical bankruptcy” in the sense that there is one particular bankruptcy that handles only medical bills and nothing else.

The two consumer bankruptcies that can be filed are Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. There will be a lot of Minnesotans who will need to file both bankruptcies in the coming months as a result of the Coronavirus. We are getting numerous phone calls from Minnesotans across the state who want to know is there such a thing as medical bankruptcy? Unfortunately, a lot of people are losing their jobs. When you lose your job a lot of times you lose your medical insurance too.

If you are in the unfortunate circumstance where you have no job, no health insurance, and you get sick and require hospitalization, you might be facing either a Chapter 7 or Chapter 13 Bankruptcy. I remember once having a 27 year old young male Minnesotan who suffered a heart attack and had no insurance. We put him in a Chapter 7 Bankruptcy and wiped out all his medical debt. How terrible to suffer a heart attack and then have to file bankruptcy on top of it too.

 But, that is exactly the position many Minnesotans will face with the Coronavirus. If you are hospitalized for weeks and have no health insurance, the hospital will not just say forget it, this one is on the house. No, they will send you a massive bill. When you get that bill, give us a call.

CONCLUSION

When the time is right, or when you are ready, reach out to Minnesota’s LARGEST bankruptcy law firm at www.kainscott.com. You will be so thankful you did!

 

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