Medical Debt Attorney

Medical debt can create serious financial pressure. Even with insurance, a hospital stay or emergency procedure may result in high out-of-pocket costs that are hard to pay. When bills go unpaid, collection actions and credit damage often follow.

At Bankruptcy Texas, we help individuals and families across the state manage and resolve medical debt through Chapter 7 and Chapter 13 bankruptcy. Our attorneys provide clear explanations, answer your questions directly, and guide you through each step of the legal process.

Options for Addressing Medical Debt in Texas

Texas treats hospital balances much like credit card balances, so providers may hand the account to a collector once the bill is past due. Before that happens, state and federal rules offer several protections you should know about.

• Non-profit hospitals must screen patients for financial help before reporting the balance, thanks to federal tax rules.
• Under Texas Health & Safety Code Chapter 185, a provider must give you an itemized invoice written in plain language before it can send the bill to collections.
• The “timely billing” law in Texas Civil Practice & Remedies Code Chapter 146 blocks collection on charges that were not billed within ten months of service when insurance would have paid.
• Surprise or balance billing is limited by Texas SB 1264 and the federal No Surprises Act, shielding patients who unknowingly receive out-of-network care at an in-network facility.
• Credit bureaus no longer list paid medical collections or any medical collections under $500, and a Consumer Financial Protection Bureau rule slated for full rollout in 2025 bars most medical debt from credit reports entirely.

The mix of laws can feel overwhelming, yet each one offers a line of defense. Collectors must still follow the Fair Debt Collection Practices Act, meaning no threats, repeated late-night calls, or lies about the balance.

How We Can Help with Your Medical Debt

Every client’s finances look different, so the first step is a close review of income, assets, and total debt. We check bills line by line, hunt for double charges, and compare them with insurance explanations of benefits.

Evaluating Your Financial Situation

We gather pay stubs, tax returns, and monthly expenses to see if a bankruptcy filing makes sense. While reviewing statements, we often find coding errors, unposted insurance payments, or collections fees that violate state law.

Exploring Debt Relief Options

• Chapter 7 bankruptcy. If you qualify under the means test, medical debt can be wiped out with no repayment plan. The automatic stay stops all collection calls the moment the case is filed.
• Chapter 13 bankruptcy. Clients who have steady wages, higher income, or want to keep a home that has equity often choose Chapter 13. Medical balances roll into a three- to five-year payment plan that fits your budget.
• Direct negotiation. When bankruptcy is not the best fit, we contact hospitals and collectors to set up affordable payment schedules or reduced lump-sum offers.

Providing Legal Representation

Our lawyers speak for you in court, at creditor meetings, and during settlement talks. If a collector breaks the Fair Debt Collection Practices Act, we fight back. We also step in when insurers deny claims or a provider shares private health details without consent.

Crafting Personalized Strategies

We never hand out one-size-fits-all advice. Some clients aim to buy a home within two years, while others worry more about protecting retirement accounts. We weigh each goal before outlining the next move.

Common Medical Debt Challenges and Solutions

Sudden bills can spark panic, but a clear plan lowers that stress. The most common hurdles we see are surprise invoices, claims denied by insurance, and balances inflated by coding mistakes.

Strategies for Managing Medical Debt

1. Read every line of the invoice and request corrections in writing within 30 days.
2. Call the provider’s billing office to ask about charity policies or income-based discounts.
3. Consider debt consolidation or settlement only after checking whether Chapter 7 or Chapter 13 would erase more of the balance.

Many families find that a short phone call prevents a balance from hitting collections, yet it can be hard to keep up with deadlines when health concerns continue. Having an attorney track those dates removes that burden.

Frequently Asked Questions

Can medical debt be discharged through bankruptcy?

Yes. Medical debt is unsecured, so it is usually discharged in Chapter 7 if you pass the means test. In Chapter 13, the balance becomes part of a court-approved repayment plan, and any remaining portion may be forgiven when the plan ends.

What if I think my medical bill is incorrect?

Start by requesting a detailed statement showing procedure codes and amounts. Dispute errors in writing with the provider and your insurer. If the office refuses to adjust obvious mistakes, our firm can step in and press the matter.

How does the No Surprises Act protect me?

The law bars many out-of-network emergency and air-ambulance bills above your in-network rate. If you are billed anyway, you can file a complaint, and the provider may face penalties. We help clients file those challenges when needed.

Talk to a Texas Medical Debt Attorney Today

Medical debt can affect every part of life, but you do not have to face it alone. Bankruptcy Texas will review your situation, explain the law, and help you protect what matters. Call 817-338-1100 or visit our Contact Us page to schedule your free consultation. We are here to provide answers, offer solutions, and guide you toward long-term financial relief.