Can You File Bankruptcy on Medical Bills in NJ?

You can file bankruptcy on medical bills in New Jersey, because debt associated with medical expenses can be discharged. Unlike obligations such as taxes and student loans, medical bills are not accorded special treatment in bankruptcy proceedings. Studies have shown that healthcare costs are the most common cause of bankruptcies in the United States, so this type of relief is crucial for thousands of New Jersey residents seeking a fresh financial start. If the burden of medical bills has become too much to bear, legal options exist to help you manage your debt and prevent harassment from creditors. These options include:

• Chapter 7 debt discharge — Eligibility for Chapter 7 bankruptcy depends on factors including the amount of your debt, your available assets and whether you have filed recently. If you qualify, certain property is liquidated under court order, so your medical bills and many other debt obligations can be eliminated.
• Chapter 13 reorganization plan — If you are earning income, this type of bankruptcy filing allows you to establish a manageable repayment plan while stopping creditors from bothering you.
• Protection from improper creditor tactics — Overzealous collectors are often acting in violation of the federal and New Jersey Fair Debt Collection Practices Acts.

A severe medical crisis is difficult enough without the further trauma of financial ruin. The law provides tools designed to help ordinary people overcome serious money problems.  An experienced bankruptcy attorney can explain the process and represent you through each stage. Throughout North Jersey, the Law Offices of James C. Zimmermann assists individuals and families who cannot meet their debt burdens due to medical costs, divorce, unemployment or any other reason. I have more than 25 years of experience helping bankruptcy clients obtain the new beginning that they deserve. Call me today at 973-764-1633 or contact me online to schedule a free consultation at one of my offices located in Vernon, Wayne, Pompton Lakes and Hackensack.