When Chapter 13 Makes Sense
When you do not qualify for Chapter 7, have assets to protect, are behind on mortgage/car, or have a combination of debts that benefit from Chapter 13 treatment.
How Much You Pay
Medical bills are lumped with other unsecured debts and receive whatever percentage your plan pays -- as low as 0%. At completion, any unpaid balance is discharged.
Ongoing Medical Expenses
Current and projected medical costs are deducted from income when calculating plan payment. If expenses increase, you can modify the plan.
Frequently Asked Questions
Can I include future medical bills?
Only pre-filing debts are included. But discharging existing debt frees income for future expenses.
What if a hospital sues during Chapter 13?
The automatic stay prevents it. Notify the hospital of your filing.
Is Chapter 13 better than negotiating?
Hospital plans require full payment. Chapter 13 may discharge a significant portion. But explore charity care and financial assistance first.
Check your bankruptcy discharge eligibility with our free screening tool.
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