Medical emergencies are stressful enough without the added burden of crippling medical bills. Unfortunately, for many Texans, these bills become a heavy weight that can feel impossible to manage. If you’re struggling with medical debt, you might be wondering, “Can I file for bankruptcy in Texas to eliminate medical bills?”

The good news is yes, you can file for bankruptcy to discharge medical debt in Texas. However, please understand this should be considered a last resort. Before exploring bankruptcy, let’s look at other avenues you can explore:

1. Review and Dispute Bills

Mistakes on medical bills are surprisingly common. Before making any payments, carefully review your bills and ensure the charges are accurate. Contact the provider if you find discrepancies and dispute them in writing.

2. Explore Payment Options

Most healthcare providers are willing to work with you on a payment plan. Negotiate a manageable monthly payment that fits your budget. Remember, ignoring a creditor only makes the situation worse.

3. Seek Financial Assistance

Many hospitals and healthcare providers offer charity care programs for patients facing financial hardship. You can also look into government assistance programs like Medicaid or Medicare.

4. Consider Debt Settlement

This involves negotiating with creditors to settle your debt for a lump sum, usually a percentage of the original amount. While it can improve your credit score in the long run, it comes with tax implications and can damage your credit in the short term.

When Bankruptcy Might Be the Right Choice

After exploring the options above, if you’re still overwhelmed by medical debt, bankruptcy could offer a fresh start. However, it’s essential to understand the different types of bankruptcy and how they affect medical debt:

  1. a) Chapter 7 Bankruptcy: This option allows you to discharge (eliminate) most of your unsecured debts, including medical bills. However, qualifying for Chapter 7 involves passing a means test, which considers your income and assets.
  2. b) Chapter 13 Bankruptcy: This option allows you to reorganize your debt into a single, manageable monthly payment plan over 3-5 years. While you won’t necessarily eliminate your medical debt entirely, at the end of the plan, any remaining debt is usually discharged.

Important Considerations

Bankruptcy shouldn’t be taken lightly. It has long-term consequences that can impact your credit score for up to 10 years. Additionally, not all types of debt can be discharged through bankruptcy.

Consulting with an experienced Texas bankruptcy attorney (like us here at Lundberg Law) is crucial before making any decisions. We can help you understand your options, navigate the complexities of the process, and determine the best course of action for your specific situation.

Remember, you don’t have to face financial hardship alone. Contact Lundberg Law today for a free consultation. We offer compassionate and personalized guidance to help you regain control of your finances and find a path towards a debt-free future.

Call Lundberg Law at 972-775-3500 or schedule your free consultation today.

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