The Law Offices of Dax J. Miller
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The Law Offices of Dax J. Miller

Medical Bills in Bankruptcy

Bankruptcy on Medical Bills

Medical Bills Can Be Included in Bankruptcy

You can file bankruptcy on medical bills.  That’s right – put medical bills in bankruptcy.  While there is a common misconception that you cannot file bankruptcy on medical bills, it is simply not true.

Medical Bills with the Hospital

Fortunately, you can file medical bills in your bankruptcy even if they are still with the hospital.  You can even file them in your bankruptcy even if you haven’t received the actual bill yet.  The key to listing medical bills in your bankruptcy is making sure you disclose the name, address and approximately how much you owe to the hospital or health care provider.  The bankruptcy does the rest.

Medical Bills in Collections

If you have medical bills with a health care provider and you do not pay them, the debt will eventually end up with a collection agency.  Consequently, that collection agency will then report the account negatively to your credit report while they try to collect against you.  You will likely not even recognize the name of the company calling you to collect.  Some of the most common medical bill collections companies are:  Hoosier Accounts Service, Cash-Pro, Atlas Collections, and Medical & Professional Collection Services.

However, if the collection agency isn’t able to get you to pay voluntarily, they may then refer the account to a collections law firm who may then sue you.

Medical Bills with Collections Law Firms

Many people think you cannot be sued for a medical bill – this is not true.  You can definitely be sued for a medical bill.  Worst yet, the lawsuit process is extremely simple and streamlined.  Medical collections law firms often file hundreds of lawsuits in a single day in Southern Indiana.

If you have been served a medical bill collections lawsuit, you cannot afford to ignore it.  Ignoring the lawsuit will allow the creditor to obtain a default judgment against you.  The creditor may then use this judgment to garnish your wages, seize money in a bank account, seize vehicles and even foreclose on your home.

Medical Bills – The Takeaway

I am not writing this to scare you.  I am writing this to impress upon you the extremely serious nature of mounting medical bills.  Unfortunately, many of us are just one injury or serious illness away from bankruptcy.  It can happen fast and without warning and if you do not act to protect yourself, you may find yourself in serious financial trouble.