What are the bankruptcy laws when you own property and have a huge medical bill?

Question

The property is my residence. I have no money and cannot get medi-cal even though I am on Social Security and rec. very little.

Answer 1

While the Bankrupcty Reform act did complicate filing for bankruptcy, most of the people who were able to file a chapter 7 bankruptcy under the old law can still do so under the new law. However, it requires careful planning and consultation with an experienced bankruptcy attorney.

In a Chapter 7 bankruptcy, *most* of your unsecured debts are discharged. The extent to which your property, (both real and personal) is exempt varies according to your state's exemption rules, which is why you need to consult a bankruptcy attorney who is licensed to practice in your state. For a referral, contact your local or state bar association.

Answer 2

It really depends on what you want to do

Do you want to get ride of all your debit? Then file for Chapter 7.

If you want to pay it back in payments. Then file for Chapter 13.

Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property. Some liens, however (such as real estate mortgages), survive. The value of property which can be claimed as exempt varies from state-to-state.

Chapter 13, the debtor proposes a plan to pay his creditors over a 3 to 5 year period. During this period, his creditors cannot attempt to collect on the individual's previously incurred debt except through the bankruptcy court. In general, the individual gets to keep his property, and his creditors end up with less money than they are owed.

Talk to a good bankruptcy attorney they will steer you in the right direction.

When you look for an attorney make sure you have done your research. Here are 2 links that will help you find an attorney that will fit your needs.

http://www.martindale.com/

http://www.abanet.org/lawyerlocator/searchlawyer.html

Answer 3

becareful with this. especially when trying to claim bankruptcy on a medical bill. if you even make an attempt to make payments on the medical bill and keep it out of collections it won't effect you all that bad. trust me it's a hell of a lot better than having a bankruptcy under your belt for the next decade.
there are chapter 7 and chapter 13 bankruptcy. one of them deals specifically with people who own there own home. call up a counseling service and then try to talk with a bankruptcy lawyer before doing anything

Answer 4

It depends. Keep in mind that you can no longer file bankruptcy without first obtaining credit counseling. What is the property specifically and is it your residence?

Answer 5

Bankruptcy laws have gotten much more strict recently.
If you have outstanding bills you can borrow against your property to pay off the bills.