 TITLE: Can You Declare Bankruptcy on Medical Bills? CONTENT: Chapter 7 Bankruptcy and Medical Debt\n-------------------------------------\nChapter 7 bankruptcy is designed to help people who can't afford to repay their debts. The court will consider what you owe, your income and any assets that can be sold to help defray your debt. Chapter 7 discharges your medical debt in a matter of months, but it isn't an option for everyone. A few specifics:\n*   **Chapter 7 is means-based.** To file for Chapter 7 bankruptcy, your income must be below your state's median for a household of your size.\n*   **Some of your property may be liquidated.** The money received will be used to pay your creditors. Exemptions exist, but in the end you are likely to lose property in a Chapter 7 proceeding.\n*   **The process takes four to six months.** When the bankruptcy is final, your eligible debts are discharged, or forgiven.\n*   **A Chapter 7 bankruptcy stays on your credit report for 10 years.** During this time, having a bankruptcy on your credit report may make it difficult to get approved for loans or secure favorable rates and terms. END