Many bankruptcies are closely tied to medical complications. When you get critically ill, there really is not a decision to make. You don’t consider the ramifications that the medical bills are going to have on your financial future, because sometimes if you don’t immediately get the medical help you need there won’t be a financial future.
Medical bills and legal bills can be discharged in a Chapter 7 or a Chapter 13 bankruptcy. Many times when a debtor has mounting medical bills, he or she also has quite a bit of credit card debt as well.
Most of the time, all of the unsecured debt can be discharged in either a Chapter 7 or Chapter 13 bankruptcy. Many times, there is also secured debt that can be discharged if the collateral is no longer affordable for the debtor.