The Medical Bankruptcy Myth

Although medical debt is a common cause of bankruptcy, there is no such thing as a Medical Bankruptcy. Bankruptcy laws require a bankruptcy filer to list all debts owed at the time of filing. Regardless of whether you file a Chapter 7 or Chapter 13 bankruptcy case, all creditors must be listed and will receive notice of the bankruptcy filing. Medical bills will be discharged by the bankruptcy, along with credit card debt, utility bills, personal loans, and other unsecured debts.

How Often Can You File for Bankruptcy?

If your previous case was a Chapter 7 and you received a discharge, you must wait eight years from the filing date to file another Chapter 7 or 4 years from the filing date to file a Chapter 13. If your previous case was a Chapter 13 and you received a discharge, you must wait 6 years from the filing date to file a Chapter 7 or 2 years from the filing date to file another Chapter 13.

Bankruptcy Stops Wage Garnishments

Filing a bankruptcy will stop the garnishment, but it will not get back the money garnished prior to the filing of the case. If a lawsuit has been filed against you, talk with a bankruptcy attorney before the garnishment takes effect.

Discharging Taxes in Bankruptcy

Owing taxes to the Internal Revenue Service (IRS) or the Kansas Department of Revenue can result in aggressive collection measures, including tax liens on your real estate and personal property; levy of wages, bank accounts, Social Security benefits, and retirement income; and offset of future tax refunds. Bankruptcy will put these collection measures on hold and may even discharge your obligation to pay the tax debt altogether.

2018 Bankruptcy Statistics

The American Bankruptcy Institute reports that 6,327 bankruptcy cases were filed in Kansas in 2018. Of these cases, 54% were filed under Chapter 7 and 45% were filed under Chapter 13. This means bankruptcy filings were up 3% in 2018 over 2017 filings. With a total population of 2,818,747 (2009 U.S. Census Bureau), Kansas saw 2.45 filings per 1,000 people.