Many of clients file for bankruptcy because they get swamped with massive medical bills. Today, over 40 million Americans have no medical insurance or other access to affordable medical care and must rely on emergency rooms for their primary care. Moreover,  millions of working Americans either have inadequate insurance from their employer, or can’t afford the plans that are available to them. Fortunately, bankruptcy provides an escape from your medical bills. Any medical bills, x-ray bills, ambulance bills, will be discharged at the end of your bankruptcy case. Billions of dollars in medical bills are discharged in bankruptcy every year.c. Lawsuit Judgments
Most civil court cases are simply all about money. If someone wins one of these lawsuits against you, then the court issues a judgment ordering you to pay. If you don’t come up with the money voluntarily, then the judgment holder is entitled to collect it by, for example, seizing your bank account, garnishing your wages, or filing a judgment lien on your home.Civil judgments are almost always dischargeable in bankruptcy, regardless of the facts that led to the lawsuit in the first place. In a bankruptcy the vast majority of civil  judgments are dischargeable Even judgment liens on your home that arise from a court money judgment can be canceled/voided if they interfere with your homestead exemption.d. Debts Arising From Car Accidents
A car accident(s) usually result in property damage and sometimes in personal injuries. Often, the driver who was responsible for the accident is insured and doesn’t have to pay personally for the damage or injury. However, sometimes the driver who was at fault either has no insurance or has insurance that isn’t sufficient to pay for everything. In that situation, the driver is financially responsible for the harm.If the accident was the result of the debtor’s negligence/careless driving or failing to drive in a prudent manner-the debt arising from the accident can be discharged in bankruptcy. If, however, the accident was the result of the driver’s willful and malicious act or drunk
driving, it will survive bankruptcy.e. Obligations Under Leases and/or Contracts
Increasingly in our world personal property such as cars are leased rather than owned. And most leases have severe penalty clauses that kick in if, for some reason, you are unable to make the monthly payment or do whatever else the lease requires you to do.Some debtors also have obligations under a contract, such as a contract to sell real estate, buy a business, deliver merchandise, or perform in a play. The other party may want to force you to hold up your end of the deal, even if you don’t want (or are unable) to, and sue you for breach of contract damages.Obligations and liabilities under these types of agreements can also be discharged in bankruptcy. Almost always, filing for bankruptcy will convert your lease or contractual obligation into a dischargeable debt-unless the trustee believes the lease or contract will produce money to pay your unsecured creditors or the court finds that you’ve filed for bankruptcy precisely for the purpose of getting out of a personal services contract.f. Personal loans and Promissory Notes
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