Posted by Aubrey at Aug
For business or individuals who have large amounts of debt, bankruptcy may be the most suitable option to get relief from debt. However, not all debts are dischargeable, so arm yourself with the facts in the event that you are considering bankruptcy.
Chapter 7 bankruptcy allows a debtor to gain relief from debt in a timely manner, discharge all or most of their debt, and stop creditor action. If a debt is dischargeable, it means that it can be dismissed through bankruptcy so that it no longer exists to the debtor. According to Chapter 7 attorney Ryan J. Ruehle Attorney at Law, LLC, these debts typically include:
- Credit card debt
- Medical bills
- Debts acquired through businesses
- Personal loans
Even though there are exceptions, the most common non-dischargeable debts include:
- Student loans
- Child support
- Debts from falsifying financial statements
- Court fines from criminal charges
- Income taxes
It may come as a surprise that medical malpractice judgments are dischargeable in the event that a physician files for bankruptcy. According to the website of Oklahoma medical malpractice attorneys at the Abel Law Firm, medical malpractice is committed whenever a medical worker does not meet the professional standards of their field. This could involve medication errors, misdiagnosis, and surgical errors. There were 12,142 medical malpractice payouts in 2012, but as long as the lawsuit does not involve an injury caused by a willful or malicious act, the payout is dischargeable. Medical malpractice is common, and it is easy for medical bills to pile up in the event of injury or illness, which is why it is important to seek legal counsel to find out if bankruptcy is right for you or if someone else may be at fault for your medical bills.