Medical bills can quickly spiral out of control, creating stress that seems impossible to escape. A report found that nearly two-thirds of personal bankruptcies in the U.S. are linked to medical debt. If you’re overwhelmed by rising medical expenses and persistent collection calls, there is a way out. Filing for bankruptcy could help you get the fresh start you need by addressing unsecured medical debts directly.

At the Law Office of Joel Gonzalez, we understand the challenges medical debts create and offer solutions that can bring relief.

This blog will walk you through how bankruptcy works for medical debt, who qualifies, and what alternatives exist if you’re not eligible to file.

How Bankruptcy Can Address Medical Bills

Medical debts are classified as unsecured debts, meaning they are not tied to collateral like a car or house. Both Chapter 7 and Chapter 13 bankruptcy are effective ways to tackle these debts:

  • Chapter 7 Bankruptcy: This option allows qualifying individuals to eliminate unsecured debts, including medical bills, entirely. If you meet the eligibility requirements, your debt could be discharged within months, providing fast relief.
  • Chapter 13 Bankruptcy: For those with a stable income but still overwhelmed by debt, Chapter 13 sets up a repayment plan to reduce medical billsand other debts over three to five years. This plan ensures affordability while protecting your assets.

Who Qualifies to File for Bankruptcy Relief in Texas?

To file for Chapter 7 bankruptcy, you must pass the means test, which evaluates your income and expenses to determine eligibility. Chapter 13 requires proof of steady income to establish a feasible repayment plan.

Eligibility for either chapter depends on several factors, including the total amount of debt, your income level, and state-specific regulations. If you’re unsure whether you qualify, consulting with a bankruptcy attorney in Corpus Christi can clarify your options.

What if Bankruptcy Isn’t an Option?

Not everyone qualifies to file for bankruptcy relief in Texas, but there are alternatives to manage medical bill collections for debt relief:

  • Negotiating with Medical Providers: Hospitals and clinics may offer payment plans or reduced settlements to help you pay off debts.
  • Nonprofit Credit Counseling Services: These organizations can assist with budgeting and negotiating better terms with a medical debt collection agency.
  • Charity Assistance: Some charities specialize in helping individuals pay off overwhelming medical expenses.

While these options don’t provide the same level of relief as bankruptcy, they can still make a difference.

Why File for Bankruptcy for Medical Bills?

 

Medical debt is a significant issue in the United States, affecting millions of Americans each year

Filing for bankruptcy offers more than financial relief—it provides peace of mind. By addressing medical bill collections and stopping harassment from collection agencies, you can focus on rebuilding your financial stability. Bankruptcy also protects you from future legal actions, like lawsuits over unpaid medical bills.

If medical bills have become unmanageable, seeking advice from an experienced bankruptcy lawyer can help you understand your options and find the best path forward.

To learn more about how bankruptcy can help manage overwhelming medical debt, read out blog. (please link to LFPA 1)

Is It Time to Take Control of Your Medical Debt?

Are sleepless nights and endless calls from medical debt collection agencies taking a toll on your life? You don’t have to face this alone. At the Law Office of Joel Gonzalez, we help clients in Corpus Christi file for bankruptcy relief in Texas, offering a straightforward path to financial recovery.

With years of experience addressing medical debt, Joel Gonzalez provides personalized guidance tailored to your unique situation. Call (361) 654-DEBT for a consultation and take the first step toward freedom from overwhelming medical bills. Together, we can help you rebuild and regain control of your financial future.