If a judgement is filed against you for medical debt, can you still file bankruptcy?

Question

Mother has mounting medical bills that are impossible to pay. Several 'creditors' are threatening collections. Wondering if they 'win' a judgement against her, can she still file bankrupcy afterwards? She is on social security and has no property or assets, so I'm not sure what they can even get (state law prevents retirement income or assets from being touched). Thank for any advice or ideas!

Answer 1

Sorry feanor you're wrong.
Medical bills can be discharge in a bankruptcy. Yes she can still file bankruptcy. When she files bankruptcy that will STOP ALL collections, judgements, lawsuits and anything else that anyone tries to file against her. She will not loose anything at all. So don't worry :)

Answer 2

Anyone can file bankruptcy on anyone except the government. You cannot bankrupt on student loans or taxes. Most courts have a personal property exemption which can be filed to protect a certain amount of assets. There is no need unless these people obtain a judgment. If she doesn't file something with the court, then they can take any money out of her bank account or anything other property in her name. Retirement income may be exempt, but may be non-exempt once it gets into her bank account. If she doesn't have any assets, then there may be no reason for her to file bankruptcy, other than to stop the harassment. You may want to consult with an attorney before doing anything. Some areas have attorneys who will work pro bono (for free) for the elderly and financially disadvantaged. Before looking at bankruptcy, she may want to consult with a credit counseling company. Many of them will talk with you without charge.

Answer 3

Yes, she can still file bankruptcy after a judgement is obtained. I can't imagine anyone filing a lawsuit if she truly has no assets and is on SSI. Rather than filing bankruptcy, I would recommend beginning making small monthly payments towards the bills. This way your mother can maintain the dignity of paying her bills without filing for bankruptcy. If the collectors are being pesky, send them cease and desist letters and they will stop calling.

Answer 4

Well, in the state of Wisconsin, she can. I know here, you can file bankruptcy to stop garnishments after going to court for the debt. Then you have to pay an additional $50 for each judgement against you to get them off your record. Also, if you choose to file bankruptcy, the creditors can no longer call you after its filed or they can be held in contempt of court. I filed bankruptcy in 2004 and put like $6,000 on there in medical bills alone!!! Contact an attorney in your state to see what the laws are there.

Answer 5

I'm a bankruptcy attorney in California. A bankruptcy discharge would void judgments a that creditor might obtain against your mother. Nonetheless, she should disclose any judgments or lawsuits to her bankruptcy attorney.

Although a bankruptcy discharge will void the judgments, it won't automatically void any judgment liens. Full disclosure to the attorney of very important.

Answer 6

In California it would be covered under bankruptcy. Your best bet would be look in the yellow pages and contact a lawyer that handles it. They will usually give out free advice and are going to be up to date with the laws in your state.

Answer 7

absoultely she can. The sooner the better. Have her look at bankruptcy court websites. I'm not sure where you live, but I used to work in bankruptcy in Oregon. Their website is www.orb.uscourts.gov

This should give you some insight as there are the forms there as well as links to appropriate law-abiding websites.

Answer 8

Medical Bills can not be discharged in bankruptcy, just like IRS bills and student loans.