Medical emergencies are stressful enough on their own—but when they come with sky-high bills, unexpected copays, or insurance shortfalls, the aftermath can be financially devastating. If you’re drowning in medical debt, you’re not alone. Thousands of people every year file for bankruptcy because of medical expenses they simply can’t afford to repay.
The good news is that bankruptcy laws are designed to help people in exactly this situation. Whether you’re facing collection calls, lawsuits, or just can’t keep up with the growing pile of hospital bills, bankruptcy may offer a way to reset your financial life and relieve the pressure.
At JPP Law, we help individuals and families throughout Northeastern Pennsylvania understand their rights when it comes to medical debt and bankruptcy. Here’s what you need to know if you’re considering this option.
Yes—medical debt is typically considered unsecured debt, which means it can be eliminated in bankruptcy just like credit card balances or personal loans. This includes hospital bills, ambulance fees, physical therapy, outpatient treatment, and even dental bills in most cases.
You are not legally obligated to keep medical debt separate when filing for bankruptcy. In fact, many of our clients file primarily due to overwhelming medical costs. If the bills are in your name and you qualify under the bankruptcy code, those debts are eligible for discharge.
Which type of bankruptcy you choose—or qualify for—depends largely on your income, assets, and other financial obligations.
This is often the fastest and most straightforward form of bankruptcy. You must pass a means test to qualify, which compares your household income to the median income in your state. If you’re eligible, most unsecured debts—including medical bills—can be completely wiped out within three to six months. Chapter 7 is ideal for those with lower income, minimal assets, and high unsecured debt.
If your income is too high to qualify for Chapter 7, or if you have assets you want to protect (like a home or vehicle), Chapter 13 may be a better fit. This type of bankruptcy reorganizes your debt into a court-approved repayment plan that lasts three to five years. At the end of the plan, any remaining eligible medical debt is typically discharged. Chapter 13 is especially useful if you’re also behind on mortgage or car payments and want to catch up while managing other debts.
Both types can offer relief from medical bills, but the right solution depends on your specific circumstances. A bankruptcy attorney in Wilkes Barre can review your financial situation and guide you toward the most effective path forward.
If your medical bills have already been turned over to collections, you’re probably experiencing frequent calls, letters, or even legal threats. Filing for bankruptcy triggers an automatic stay, a legal protection that stops most collection actions immediately. That means:
This automatic stay gives you breathing room and allows you to address the debt through bankruptcy court instead of continued harassment by collection agencies.
One of the biggest concerns people have is whether filing bankruptcy on medical debt will affect their access to care. While some providers may choose not to continue seeing you if you discharge a balance owed to them, many will still treat you—especially if you agree to pay out-of-pocket for future services.
Hospitals and larger healthcare systems typically do not restrict care based on bankruptcy filings. It’s wise to communicate with your current providers and, if necessary, discuss payment arrangements for future visits that fall outside the bankruptcy case.
Bankruptcy requires full financial transparency. You must disclose all your debts, assets, and income. That means you can’t choose to exclude a specific doctor’s bill or hospital account. However, after your case is discharged, you can voluntarily repay any creditor if you choose to—this is common if you want to maintain a relationship with a particular provider.
Trying to withhold debts from the bankruptcy process can result in dismissal of your case or denial of discharge, so it’s important to be thorough and honest in your filing.
Unpaid medical bills often end up on your credit report, especially after they’ve been sent to collections. This can drag down your credit score significantly and make it harder to qualify for loans, apartments, or even certain jobs.
Bankruptcy will appear on your credit report as well—Chapter 7 remains for 10 years and Chapter 13 for 7 years—but it can actually be the first step toward improving your credit. Once your debts are discharged, your credit utilization ratio improves, and you can begin rebuilding with new positive payment history.
In many cases, clients see their credit scores begin to improve within 12–18 months after a bankruptcy discharge. With responsible financial habits, most people can qualify for new credit cards or auto loans within a couple of years.
If you’re thinking of covering medical expenses with a credit card to “buy time,” be careful. While it might seem like a short-term solution, converting medical debt into credit card debt can hurt you in bankruptcy.
Credit card debt incurred shortly before filing—especially if used to pay for non-emergency expenses—can be considered fraudulent or non-dischargeable by the court. It’s almost always better to include the original medical bill in your bankruptcy filing than to roll it into a high-interest credit card account.
Talk to a bankruptcy lawyer before taking on any new debt to pay old bills, especially medical ones.
Bankruptcy isn’t your only option, but it may be your best one if the debt is large or already in collections. Depending on your financial situation, you might also explore:
However, if you’ve already tried these methods or they don’t significantly reduce your debt, bankruptcy may offer the cleanest and most reliable resolution.
At JPP Law, we understand that most people with medical debt didn’t get there by choice. Health emergencies, accidents, chronic illness, or insurance gaps can devastate even the most responsible household. Our compassionate, experienced team will take the time to understand your unique situation and help you determine whether bankruptcy is the right step for you.
We’ll walk you through your options, explain what’s involved in both Chapter 7 and Chapter 13 filings, and help you protect your future while relieving the stress of medical debt. With a clear plan and the right legal guidance, you can move forward with confidence.
Contact us today to schedule a consultation with a knowledgeable bankruptcy lawyer in Wilkes Barre. Let’s work together to find the solution that gives you the financial and emotional relief you deserve.
