Medical Bills

Medical debt is one of the leading causes of financial hardship for individuals and families in Vancouver, Washington. When you have unexpected medical expenses, they can quickly spiral out of control and leave you with overwhelming bills you can’t pay.

Fortunately, Washington State laws provide options for relief, including bankruptcy.

If you have thought about ways to get out of crippling medical bill debt and bankruptcy has crossed your mind, don’t hesitate to get in touch with a Vancouver bankruptcy attorney who can run through all your options and offer you the support you need.

Medical bills can start piling up for several reasons, including:

• Emergency hospital visits
• Surgeries and medical procedures
• Prescription medications
• Specialist consultations
• Long-term treatments and rehabilitation

Unlike credit card or mortgage debt, medical debt is often seen as involuntary. Even those who are insured can face high out-of-pocket expenses, deductibles, and surprise bills.

Medical debt in Clark County and throughout Washington is treated as unsecured debt under state law. Some of the key regulations for this include:

• RCW 19.16.250: This limits how collection agencies can pursue you for your unpaid medical bills.
• RCW 6.15.010: This outlines the exemptions you can claim to protect some of your assets from creditors if you file for bankruptcy.
• RCW 7.28.300: This includes homestead protections that prevent the forced sale of your home due to medical debt.

Clark County residents facing aggressive debt collection should be aware of these laws and their rights under federal and state regulations.

If you are struggling with your medical bills in Vancouver, consider these options:

• Negotiate With Your Providers: Many hospitals and clinics offer payment plans or financial assistance programs.
• Debt Settlement: Some creditors may accept a lower lump-sum payment to settle the debt.
• Medical Credit Cards: Special financing options are available, but interest rates can be high.
• Bankruptcy: Chapter 7 and Chapter 13 bankruptcy can eliminate or restructure medical debt.

Filing for bankruptcy can bring you much-needed relief from medical bills, depending on the type you choose.

• Discharges most of your medical debt within a few months
• Must pass the Washington State Means Test to qualify
• Protects your essential assets under Washington’s exemption laws

• Creates a structured repayment plan you can make payments on over 3–5 years
• May allow you to keep your most valuable assets while paying reduced debts
• Prevents wage garnishment and aggressive collection efforts against you

A Vancouver bankruptcy attorney can help determine the right option based on your financial situation.

The means test is simply a requirement for those filing for Chapter 7 bankruptcy in Vancouver. It determines if your income is low enough to qualify for a debt discharge.

The test compares your average monthly income over the past six months to the median income for a household of your size in the state.

• If your income is below the state median, you typically pass and can file for Chapter 7.
• If your income is above the state median, you may still qualify for Chapter 7, but the process becomes a bit more complex.

Your experienced attorney can help you navigate the means test and determine which path to take.

When filing for bankruptcy in Vancouver, certain assets may be exempt from liquidation. These exemptions are designed to help you retain your essential property while eliminating your debt.

• Homestead Exemption (RCW 6.15.010): The exemption for individuals is up to $125,000, while married couples can protect up to $250,000 of home equity.
• Personal Property: This includes household goods, clothing, and tools of the trade. It also places certain dollar limits on the value that can be exempted.
• Motor Vehicle Exemption: You can protect one vehicle up to $3,250.
• Retirement Accounts: 401(k) plans, IRAs, and other retirement accounts are generally exempt from bankruptcy.

Washington State has clear laws and rules for debt collectors. Under the Washington Collection Agency Act (RCW 19.16):

• Your collectors can’t threaten, harass, or use deceptive practices against you.
• Collectors cannot engage in harassment, like repeated phone calls or contacting your employer.
• Medical providers have to give you adequate notice before sending the debt to collections.

If you experience any kind of harassment from debt collectors, a bankruptcy attorney can help stop unlawful collection practices.

Medical debt can be overwhelming, but you do have options. Understanding Washington’s debt collection laws, exploring repayment alternatives, and considering bankruptcy are all big steps toward financial recovery.

Make the process smoother and regain control of your finances by seeking the guidance of one of our qualified Vancouver bankruptcy attorneys.