Medical Bills


The high costs associated with medical care and treatment make medical debt one of the leading causes of bankruptcy in Georgia and throughout the country. Even people with health insurance can become overwhelmed with medical bills that seem impossible to pay. At Perrotta & Cahn we help clients confront and overcome difficult financial situations through debt settlement and bankruptcy. Please learn more about handling medical debt below.

Negotiating Medical Bill Write-Downs & Payment Plans

For many people with significant medical bills but not much other debt, debt settlement is a good option to avoid bankruptcy and delinquent bills. Medical providers are often willing to accommodate debtors who are having trouble paying their medical bills because they would rather receive some payment as opposed to nothing at all.

In debt settlement negotiations, a debtor may ask for a “write-down” on a medical bill, which means offering a lump sum payment of a lesser amount, or seek to establish a more manageable payment plan with the creditor. Sometimes, medical providers will accept a very small monthly payment as long as the debtor is paying some amount toward his or her outstanding balance.

Discharging Medical Bills in Chapter 7 & Chapter 13 Bankruptcy

Fortunately for those with high medical bills, medical debt is one of the easiest types of debt to eliminate through bankruptcy. Bankruptcy trustees and judges generally understand that medical bills are beyond a debtor’s control, and often sympathize with the debtor’s need for Chapter 7 or Chapter 13 bankruptcy protection. In a Chapter 7 bankruptcy, medical debt can be completely discharged because it is considered “unsecured” debt, or debt not backed by collateral.

If a debtor does not qualify for Chapter 7 bankruptcy, it is often possible to use Chapter 13 to manage, and eventually eliminate, medical debt. With Chapter 13 bankruptcy, the debtor makes monthly payments on existing debts over a period of three to five years, but only for as much as he or she can afford. At the end of the repayment period, any remaining unsecured debt, including medical bills, will be discharged.

Talk to an Experienced Debt Relief Lawyer about Handling Your Medical Bills

At Perrotta & Cahn our debt relief and bankruptcy lawyers can help you develop a plan for tackling your unpaid medical bills. Contact us today for a free initial consultation. We have locations in Cartersville, Calhoun, Dalton and Dallas to conveniently serve clients throughout northwest Georgia.