Can Bankruptcy Help You Escape Overwhelming Medical Bills?

If you’re drowning in medical debt, you’re not alone. Medical bills are one of the top reasons people consider filing for bankruptcy. A single emergency, surgery, or hospital stay can leave you facing thousands—or even tens of thousands—of dollars in bills. And if you’re uninsured or underinsured, the situation gets worse fast.

The good news? Bankruptcy can be a powerful tool to help you reset and move forward. Let’s walk through how it works, what it can and can’t do, and whether it might be the right step for you.

Why Medical Debt Builds Up So Fast

Medical bills can sneak up on you. Maybe you were in an accident or had an unexpected illness. Maybe insurance didn’t cover as much as you thought it would. Or perhaps you’ve been making payments, but interest and fees keep piling up.

It’s not always about poor money management. Often, it’s just bad luck combined with a health care system that’s hard to navigate.

And once collections start calling, the stress only multiplies.

Can Bankruptcy Wipe Out Medical Debt?

Yes. Medical debt is considered unsecured, just like credit cards or personal loans. That means it can usually be wiped out—or discharged—through bankruptcy.

There are two main types of bankruptcy for individuals: Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy

This is often the fastest and most common type of bankruptcy. If you qualify, most or all of your unsecured debts—including medical bills—can be discharged in months.

To qualify for Chapter 7, you must pass a means test examining your income and expenses. Many people with large medical bills qualify, especially if the debt has made it hard to keep up with daily expenses.

In Chapter 7, you may have to give up some property. However, Florida has strong exemption laws, which means you may be able to keep your home, car, and personal belongings.

Chapter 13 Bankruptcy

If you earn too much to file for Chapter 7 or want to protect certain assets, Chapter 13 might be a better option.

In this type of bankruptcy, you create a repayment plan that lasts three to five years. You pay back some of your debts based on what you can afford. Any remaining medical debt may be discharged at the end of the plan.

Chapter 13 can also help if you’re behind on mortgage or car payments and want to avoid foreclosure or repossession.

Will All My Medical Bills Go Away?

In most cases, yes. Bankruptcy can wipe out old medical bills, collections, and even lawsuits related to unpaid treatment.

But bankruptcy won’t cover new medical expenses after you file. And if you’re continuing treatment, it could impact your relationship with specific providers. Some doctors or hospitals may choose not to continue care once you file.

Will Bankruptcy Stop the Harassing Phone Calls?

Yes. The moment you file for bankruptcy, the automatic stay goes into effect. This is a legal order that stops all collection efforts.

No more calls from collection agencies. No more letters or threats of lawsuits. It even stops wage garnishments and scheduled court dates related to your medical debt.

This gives you the breathing room to focus on physical and financial recovery.

What Happens to My Credit?

Bankruptcy will impact your credit score. There’s no way around that. However, the damage may already be done if your score has dropped due to unpaid medical bills, collections, or missed payments.

The truth is, bankruptcy can be the first step toward rebuilding your credit. Once your debts are discharged, you can progress steadily without the weight of unpayable bills dragging you down.

Is Bankruptcy the Right Choice for Me?

That depends on your complete financial picture. Bankruptcy is a serious decision, but for many people, it’s a life-changing one—in a good way.

If medical debt controls your life, you’re choosing between paying a bill and buying groceries, or if stress keeps you up at night, it’s time to talk with someone who can help.