What Is A “Medical Bankruptcy?”
By Douglas Jacobs, California Bankruptcy Attorney on Apr 27, 2008 in Bankruptcy Myths, Bankruptcy Practice and Procedure, Chapter 7 Bankruptcy, General Bankruptcy Information
I don’t know. But, recently, I got a call from someone in Ohio (I’m in California) telling me that she had filed a “medical bankruptcy” but needed some help in California regarding property she owned here.
So, what is a “medical bankruptcy?” Frankly, there’s no such thing in the law. I suspect what she meant is that she had to file bankruptcy because of medical bills, or that the largest part of her debts were those kind of expenses.
Any frequent reader of this blog will have seen many posts explaining that you can’t file bankruptcy on only some debts or some types of debts. You can, of course, after filing a chapter 7 bankruptcy, choose to pay anyone you want, but you have no legal obligation to do so. But all debts must be listed on the bankruptcy petition when it is filed. In fact, not listing all debts and property in your bankruptcy paperwork can be cause for denial of your discharge or worse. Consult a competent bankruptcy attorney in your vicinity.
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