Ask a North Carolina Bankruptcy Lawyer: Can I Limit my Chapter 13 Bankruptcy to Medical Bills Only?

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  2. Ask a North Carolina Bankruptcy Lawyer: Can I Limit my Chapter 13 Bankruptcy to Medical Bills Only?
Ask a North Carolina Bankruptcy Lawyer Can I Limit my Chapter 13 Bankruptcy to Medical Bills Only

Americans spend about $3.8 trillion on healthcare every year. According to a 2019 study, per capita health care expenditures increased to $11,582. So it should come as no surprise that medical expenses are one of the most common reasons people file for bankruptcy. In fact, medical debt contributed to 66.5% of 2019 bankruptcies. If you have accumulated a lot of healthcare-related debt, you might be wondering if you could file bankruptcy but for medical bills only. Let’s ask a North Carolina bankruptcy lawyer if that’s possible.

First, it’s important to understand how Chapter 13 bankruptcy works.

Debtors with a certain level of income might find debt relief through a Chapter 13 bankruptcy. In fact, sometimes Chapter 13 is called the wage earner’s plan.

When filing a Chapter 13 bankruptcy petition, the borrower also provides information about:

  • all assets and liability,
  • income and expenditures,
  • executory contracts and leases, and
  • exhaustive information about their financial affairs.

In the statement of financial affairs, petitioners must include: “A list of all creditors and the amounts and nature of their claims.”

After providing all this information, the petitioner and a bankruptcy administrator work out a repayment plan. Debtors typically pay off most of their debts in a three-to five-year plan. Once the plan is completed and the debtor meets other requirements, the debtor receives a Chapter 13 bankruptcy discharge.

Must all debts be included?

Yes. You will be required to tell the court about all of your debts, no matter the source. Even debts you might consider personal must be disclosed. For example, maybe you borrowed money from your brother to buy a new car, and you don’t want that debt included in your Chapter 13 bankruptcy. You can discuss this with your attorney, but it is highly unlikely you would be able to hide this debt.

However, your North Carolina bankruptcy lawyer can explain how all of your debts will be handled during your bankruptcy. While all debts must be disclosed, they are treated differently. In fact, your debts will be considered as one of the following types of claims:

  • Priority.
  • Secured.
  • Unsecured.

Medical bills are usually considered unsecured debt that is not a high priority. In other words, debts can usually have their medical bills discharged in most cases.

Call to Discuss Your Medical Bills and Potential Chapter 13 Bankruptcy.

Attorney Leslie Craft has the experience you need to deal with bankruptcy and traffic violations. Ms. Craft’s goal is always to help her clients get past their legal problems and get on with their lives.

To schedule a free personal consultation, call Craft Law Offices at (252) 752-0297 or email us at My offices are located in Greenville, Morehead City, and Rocky Mount for your convenience. I also represent clients in surrounding Eastern North Carolina communities, including Warrenton, Elizabeth City, Roanoke Rapids, Goldsboro, and Jacksonville.

Bankruptcy Doesn’t Have to Be a Painful Process.

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