Immediate Protection
The automatic stay under 11 U.S.C. 362 immediately stops: collection calls, pending lawsuits, wage garnishment, and bank levies. Automatic -- no court order needed.
Stopping Lawsuits
If a hospital has sued you, filing bankruptcy freezes the case. In Chapter 7, the debt is discharged within 4 months and the lawsuit dismissed.
Collection Agencies
Medical debts sold to collection agencies are covered by the stay. Notify them of your filing. Continued collection is a violation with sanctions.
Frequently Asked Questions
Will the hospital stop billing me?
They must. Send your case number and filing date if bills continue. Stay violations result in monetary sanctions.
Can a hospital refuse treatment?
No. Hospitals cannot discriminate based on bankruptcy (11 U.S.C. 525). Emergency departments must treat under EMTALA.
What about medical debt on credit reports?
The 2023 changes eliminated most medical collections from reports. Under $500 is no longer reported. Paid collections are removed.
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