{"id":2039,"date":"2019-08-02T10:36:24","date_gmt":"2019-08-02T10:36:24","guid":{"rendered":"https:\/\/recoverylawgroup.com\/?p=2039"},"modified":"2025-08-06T07:48:08","modified_gmt":"2025-08-06T07:48:08","slug":"chapter-7-bankruptcy-and-medical-debt","status":"publish","type":"post","link":"https:\/\/recoverylawgroup.com\/staging_D\/chapter-7-bankruptcy-and-medical-debt\/","title":{"rendered":"Chapter 7 Bankruptcy and Medical Debt"},"content":{"rendered":"<p style=\"text-align: justify;\">Considering the rampant spread of diseases across the world, having health insurance is mandatory. However, despite the assurance of insurance, people still end up accumulating a huge amount of medical debt. Getting rid of the unsurmountable medical debt is a reason why many people file for bankruptcy. However, the fate of any debt during bankruptcy depends on which kind of debt it is, say lawyers of Los Angeles based bankruptcy law firm <a style=\"color: blue;\" href=\"https:\/\/recoverylawgroup.com\/staging_D\">Recovery Law Group<\/a>.<\/p>\n<p style=\"text-align: justify;\">Debts are classified broadly into four categories:<\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>Secured debts<\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">If the creditor has a lien on your property, such as home or car, and can foreclose or repossess the said property in case of non-payment of dues, then, the debt is known as, secured debts. In this case, the property acts as collateral. Examples include car loan and mortgages.<\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>Unsecured debts<\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Any debt which is not secured, by a property is termed as unsecured debt.<\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>Priority debts<\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Priority debts are non-dischargeable, i.e. they are not wiped off during bankruptcy. These include domestic support (child support or alimony) and certain taxes owed to the government. Priority debts are also unsecured but cannot be discharged during bankruptcy.<\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>Nonpriority unsecured debts<\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">These debts are generally the last to be paid in a Chapter 7 bankruptcy. Most of these debts, apart from a student loan, are discharged without repayment in bankruptcy. Example of such debts is credit card, medical debts, and unsecured personal loan.<\/p>\n<p style=\"text-align: justify;\"><strong>What happens to medical debt in Chapter 7 bankruptcy?<\/strong><\/p>\n<p style=\"text-align: justify;\">Medical debts are nonpriority unsecured debts and treated accordingly. In the case of <a style=\"color: blue;\" href=\"https:\/\/recoverylawgroup.com\/staging_D\/bankruptcy-attorney-in-dallas\/\">Chapter 7 bankruptcy Dallas<\/a>, your bankruptcy trustee uses your non-exempt property to pay off your creditors. The payment is made first towards your secured debts, then your priority debts and finally towards nonpriority, unsecured debts. Any remaining unsecured debts are discharged in Chapter 7 bankruptcy. It is thus, the best option to get rid of a large amount of unsecured nonpriority debts. However, qualifying for Chapter 7 bankruptcy is difficult. You need to pass the disposable income means test, i.e. your income must be less than the average income of a household of similar strength in your state. This chapter of bankruptcy is not ideal for debtors who have a significant amount of non-exempt property as that will be sold off to repay your loans. It is therefore important to contact bankruptcy lawyers at 888-297-6023 to know whether Chapter 7 bankruptcy is ideal to get rid of medical debts in your case.<\/p>\n<p style=\"text-align: justify;\">\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f79-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"79\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/staging_D\/wp-json\/wp\/v2\/posts\/2039#wpcf7-f79-o1\" method=\"post\" class=\"wpcf7-form init cf7mls-no-scroll cf7mls-no-moving-animation\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"79\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.6\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f79-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/><input type=\"hidden\" name=\"_wpcf7_recaptcha_response\" value=\"\" \/>\n<\/fieldset>\n<div class=\"uacf7-form-wrapper-container uacf7-form-79  \"><div class=\"full\">\n<div class=\"half\">\n<span class=\"wpcf7-form-control-wrap\" data-name=\"first-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"First Name\" value=\"\" type=\"text\" name=\"first-name\" \/><\/span>\n<\/div>\n<div class=\"half\">\n<span class=\"wpcf7-form-control-wrap\" data-name=\"last-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Last Name\" value=\"\" type=\"text\" name=\"last-name\" \/><\/span>\n<\/div>\n<div class=\"half\">\n<span class=\"wpcf7-form-control-wrap\" data-name=\"phone-no\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Phone Number\" value=\"\" type=\"text\" name=\"phone-no\" \/><\/span>\n<\/div>\n<div class=\"half\">\n<span class=\"wpcf7-form-control-wrap\" data-name=\"zip-code\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Zip Code\" value=\"\" type=\"text\" name=\"zip-code\" \/><\/span>\n<\/div>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"your-email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Email Address\" value=\"\" type=\"email\" name=\"your-email\" \/><\/span>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"your-message\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea wpcf7-validates-as-required\" id=\"condition-detail\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Your Message\" name=\"your-message\"><\/textarea><\/span>\n<div class=\"fully\">\n<input class=\"wpcf7-form-control wpcf7-submit has-spinner\" type=\"submit\" value=\"Submit\" \/>\n<\/div>\n<\/div><\/div><div class=\"fusion-alert alert custom alert-custom fusion-alert-center wpcf7-response-output fusion-alert-capitalize awb-alert-native-link-color alert-dismissable awb-alert-close-boxed\" style=\"--awb-border-size:1px;--awb-border-top-left-radius:0px;--awb-border-top-right-radius:0px;--awb-border-bottom-left-radius:0px;--awb-border-bottom-right-radius:0px;\" role=\"alert\"><div class=\"fusion-alert-content-wrapper\"><span class=\"fusion-alert-content\"><\/span><\/div><button type=\"button\" class=\"close toggle-alert\" data-dismiss=\"alert\" aria-label=\"Close\">&times;<\/button><\/div>\n<\/form>\n<\/div>\n<\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>Considering the rampant spread of diseases across the world, having health insurance is mandatory. However, despite the assurance of insurance, people still end up accumulating a huge amount of medical debt. Getting rid of the unsurmountable medical debt is a reason why many people file for bankruptcy. However, the fate of any debt during bankruptcy depends on which kind of debt it is, say lawyers of Los Angeles based bankruptcy law firm Recovery Law Group. Debts are classified broadly into four categories: Secured debts If the creditor has a lien on your property, such as home or car,  [&#8230;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[230,232,233,231],"class_list":["post-2039","post","type-post","status-publish","format-standard","hentry","category-chapter-7-bankruptcy","tag-affordable-bankruptcy-dallas","tag-bankruptcy-attorney-dallas","tag-chapter-7-bankruptcy-dallas","tag-filing-bankruptcy-dallas"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Learn About Chapter 7 Bankruptcy and Medical Debt<\/title>\n<meta name=\"description\" content=\"Learn how Chapter 7 bankruptcy can help eliminate overwhelming medical debt and offer a fresh financial start for individuals facing hardship.\" 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