Bankruptcy Attorney Allen TX: Legal Help for Medical Debt

Bankruptcy Attorney Allen TXIf you’re unable to pay your medical bills and bill collectors are calling you incessantly, contact a bankruptcy attorney Allen TX. A lawyer can help you stop the harassment and file for Chapter 7 bankruptcy. Chapter 7 will wipe out your medical debt and repay other debts you owe without sacrificing necessary income for housing, food and other daily needs.

Bankruptcy Attorney Allen TX: Chapter 7 Bankruptcy and Medical Debt

Medical debts are considered non-priority unsecured debts and are paid last during bankruptcy. Credit card debts, unsecured personal loans and medical bills fit in this category. They can be discharged without payment during bankruptcy proceedings. Non-dischargeable priority debts include alimony, child support and most taxes. These debts must be paid first during a Chapter 7 bankruptcy and can’t be discharged.

Your medical debts won’t receive first priority in a Chapter 7 bankruptcy as long as the trustee makes payments to creditors. All of your medical debt (or the remaining portion) will be discharged through Chapter 7 bankruptcy. If you or your trustee paid some of the medical debt, the remainder will be wiped out when the case is discharged.  There is no limit on the amount of medical debt that can be discharged during a Chapter 7 bankruptcy. However, regardless of your medical debt, you must meet the criteria to file for Chapter 7 bankruptcy.

Bankruptcy Allen TX: Qualifying for Chapter 7 Bankruptcy

To qualify for Chapter 7 bankruptcy and discharge of medical debt, you must pass a disposable income means test. You must prove you don’t have enough income to pay the debts. To pass the means test, you needn’t be destitute, but you have to prove to the court that you don’t have sufficient disposable income to pay the medical bills. Disposable income is what’s left after you pay rent/mortgage, food and other basic expenses.

The means test was devised to ensure that only people who truly can’t pay their debts file for Chapter 7. High-income people can file for Chapter 13 bankruptcy instead, and reorganize their debts and pay back debts on a schedule determined by the court.

If you feel hopeless and harassed by bill collectors about your unpaid medical bills, call Collins and Arnove for a dependable bankruptcy attorney Allen TX. We can put an end to the stress and start procedures to get the debt legally discharged. We have evening and same-day appointments, and you can even visit us without an appointment on Walk-In Wednesdays. Call us now at 972-516-4255 for a free consultation.

Collins & Arnove | Bankruptcy Attorney Allen TX | 972-516-4255