There are Some Debts That Can Be Removed

Video Transcribed: Bankruptcy Attorney Edward Kelley here, one a day deadline. As always, answering your bankruptcy questions. So today, we’re going to, in this time of Coronavirus, talk about what kind of debts can you pretty much just get rid of in one clean sweep.

So first, again, apropos to these times with this virus outbreak. Medical bills. So almost never do you have any collateral on a medical debt. Usually, it’s hospital ambulance and it may or may not just be a partial bill after the provider was already paid by insurance.

But unless I really haven’t seen a scenario where a medical bill has had collateral secured to it, and that’s the big question.

If a debt is something you can just knock right out, is there any collateral? The case of medical bills, generally not. So just know, and this is something that the collection agents calling you don’t want you to know.

They really don’t have any leverage preventing you from doing a bankruptcy. In most cases, those debts are going to be because you didn’t have insurance, insurance didn’t pay something you thought they would or you got bad insurance.

So this is one of also the scenarios that I tell my clients, don’t worry about your conscience here. You may be beating yourself up because you always pay your debts, but you can’t control what happens medically.

You can’t control our terrible healthcare system in America. And you can’t control what insurance companies want to do for you. So I have yet to meet somebody trying to bankrupt on elective medical procedures.

Not saying that never happens, but these are the real reasons. This is one of the real reasons that bankruptcy code is here, so use it. For the rest of this series, we’re going to talk about other debts that you can knock right out.

But that’s the big one and probably the number one reason slightly above credit cards for why people end up.