Does medical debt affect your spouse?

Does medical debt affect your spouse?

If your spouse incurs medical debts during marriage, you will be liable for that debt. You can even be separated and brought to court as liable for the debts of your spouse. In most states, regardless of if the medical bills are in the name of your spouse only, you will be liable.

Is a wife responsible for husbands medical bills?

In most cases in California, a spouse is responsible for all the bills, including medical, of their late partner. California is one of the few states that’s a “community property” state and so most debt accumulated by a married person is a “marital obligation” with liability for both people.

What kind of bankruptcy can I file for medical debt?

Chapter 13 and medical debt. If you don’t qualify for Chapter 7 bankruptcy, or you own assets that you might lose in a Chapter 7 bankruptcy, you can file for Chapter 13 bankruptcy. In Chapter 13, you’ll pay back the portion of the medical debt you can afford through your repayment plan.

How often are medical bankruptcies in the US?

The number of medically related bankruptcies is slightly less than the rate of recent years. Despite the anticipated 2013 dip, such bankruptcies represent about three out of every five filings. “A lot of Americans probably think about bankruptcy as coming from unpaid credit-card debt or mortgages,” LaMontagne said.

Can a medical bill be wiped out in bankruptcy?

You can wipe out medical debt in bankruptcy but consider other nonbankruptcy options first. If you’re having trouble paying for a large medical bill and are thinking about filing for bankruptcy, consider looking into other options first—especially if you have good credit.

What happens if I file for bankruptcy and the provider sues?

Also, if the provider sues you and gets a judgment, it can garnish your wages or take other collection action. Not only can filing for bankruptcy wipe out your debt, but the sooner you file, the sooner you’ll be back on the road to financial recovery.

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