Can You Get Rid of Medical Debt in a Bankruptcy?

 Posted on March 31, 2025 in Bankruptcy

Unfortunately, medical care is expensive, and a significant medical event can be even more so. As a result, many Americans have significant medical debt. The question is, can bankruptcy be a way out of this medical debt, and is it a good idea to file for bankruptcy to get rid of medical debt? The good news is that much medical debt can be discharged in bankruptcy. In fact, by some estimates more than half of all bankruptcies are medical bankruptcies. An experienced Harris County, TX bankruptcy attorney can advise on filing for what is sometimes called a medical bankruptcy–meaning filing for bankruptcy specifically to discharge medical debt.

Does Bankruptcy Get Rid of Medical Bills? 

The short answer is yes, bankruptcy can get rid of medical bills. Medical debt is considered unsecured debt, which is not backed up by collateral such as a home or personal property, and that type of debt is dischargeable in bankruptcy. Additionally, if you paid for your medical expenses with your credit card, credit card debt is generally also dischargeable in bankruptcy.

Should I File for Chapter 7 or Chapter 13 Bankruptcy to Get Rid of My Medical Debt?

You can get rid of your medical debt in both Chapter 7 and Chapter 13, but the timeline and process will vary significantly. Chapter 7 bankruptcy erases medical debt in a relatively short amount of time (between four to six months). At the same time, you can keep many of your assets, and in Texas that includes your primary residence. However, in order to file for Chapter 7 your income needs to fall below a certain amount. To see if you qualify for Chapter 7, you must pass the means test that determines income qualification.  

If you do not pass the means test because your income is too high to qualify for Chapter 7, you can still file Chapter 13 to get rid of medical debt. Chapter 13 is a much longer process, but it gives you an opportunity to make a repayment plan to reorganize your medical debt. While you will not technically discharge the medical debt, the repayment plan will allow you to repay it at an affordable rate. At the end of the three to five-year period in which you pay the repayment plan, you will have gotten rid of most if not all of your medical debt.

Call a Harris County, TX Medical Bankruptcy Lawyer

If you have gone through a significant medical event, the debt that accompanies it can feel like adding insult to injury–adding more stress and hardship to an already stressful situation that is outside of your control. There are options for a way out, however, and an experienced Houston, TX bankruptcy attorney can help you figure out if filing for medical bankruptcy is right for you. At The Fealy Law Firm, PC, attorney Vicky Fealy focuses on helping good people through hard times, and she is available to discuss your concerns via a free consultation at 713-526-5220.