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Quick Summary: Healthcare-related debts such as medical bills become dischargeable through bankruptcy (Chapter 7 and 13). Chapter 7 offers discharge for eligible medical bills. But it can involve assetliquidation, and the discharge is independent of such sales. Timing is crucial in bankruptcy.
Understanding what debts bankruptcy can eliminate is important. Unsecured debt is a type of debt that is not backed by collateral. In this article, we will explore the types of unsecured debts that bankruptcy can erase. Credit cards, medical bills, and personal loans make up most unsecured debt that bankruptcy can eliminate.
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