The shortest answer to this question is, “No.” You can’t really pick and choose between your debts when you file for bankruptcy and just target the medical bills. All your unsecured creditors are generally treated alike. However, filing a bankruptcy can help you manage or eliminate overwhelming medical debt. The phrase “medical bankruptcy” may simply be a term that people came up with to describe how bankruptcy helped them overcome medical bills.

Chapter 7 bankruptcy is typically a good option for those mired in medical debt. Just the process of filing gives you immediate relief from some of the burdens associated with medical debt. For example, it will put a fast stop to the harassing phone calls you might receive from your creditors or collection agencies. It also means you will not receive any other forms of threatening correspondence.

While the act of filing does not make your debt immediately disappear, it does mark the beginning of the debt discharge process. Several additional benefits of pursuing a Chapter 7 bankruptcy include:

  • You may be allowed to keep at least some of your possessions
  • Chapter 7 does not take a very long time (typically just three to six months) from the date of filing to the discharge of your debts
  • It is often possible to begin rebuilding your credit and acquiring new credit cards in just a few (one to three) years
  • If you continue to suffer from medical or other debt even after a successful chapter 7 bankruptcy, you can file again in six years

Nashua residents facing massive medical debt often feel like they have nowhere to turn for help. Although Chapter 7 bankruptcy does not meet every New Hampshire family’s needs, it is wise to talk over the matter with a lawyer. If a Chapter 7 bankruptcy is not an option, you can go on to consider Chapter 13 bankruptcy instead. An experienced advocate can help you explore the option that fits your situation the best.