Yes, you can file bankruptcy on medical bills in Michigan—these debts are considered unsecured and can be discharged through Chapter 7 or reorganized under Chapter 13.
With decades of experience helping Michigan residents manage overwhelming medical debt, I’ve guided countless individuals through the bankruptcy process to regain financial control. In this article, I’ll explain exactly how medical debt is treated in bankruptcy, the difference between Chapter 7 and Chapter 13, and how to protect your financial future. When filing for bankruptcy, you must disclose all debts, including medical debt, to ensure they are included in the process.
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Frequently Asked Questions
What if I already have a judgment for unpaid medical debt?
Bankruptcy can still discharge the debt and remove most judgments, but it’s best to file before a judgment is entered.
Do I need to list every medical provider?
Yes. You must disclose all creditors—including hospitals, specialists, and labs—to include their debts in your case.
How long does it take to discharge medical debt through bankruptcy?
Chapter 7 usually takes 4–6 months. Chapter 13 lasts 3–5 years due to the repayment plan.
Can medical bankruptcy affect my job or professional license?
Filing bankruptcy is a legal right and typically does not impact employment or licensure. Most employers don’t even check.
Should I consult an attorney for medical bankruptcy?
Absolutely. A skilled bankruptcy attorney can help you maximize exemptions, avoid mistakes, and complete the process efficiently.
Can I include all types of medical bills?
Yes. Hospital bills, doctor fees, lab work, ambulance costs, and other medical-related charges are included.
Will I lose my house or car if I file for bankruptcy?
No, not if your equity is within Michigan’s exemption limits. Many filers keep their home and vehicle.
Can medical debt be wiped out in bankruptcy?
Yes. Medical bills are unsecured and fully dischargeable in both Chapter 7 and Chapter 13 bankruptcy.