Do you want government health care? Think again- your medical bills may become non-dischargeable in bankruptcy.

Will your bankruptcy “out” for medical debts be gone if the government takes over health care?

We know that the government generally exempts itself from bankruptcy discharges.  Debts owed to the government generally pass through a bankruptcy unaffected meaning that you still owe them after it’s all over.  It’s not fair but its the way it is.  Most taxes and government fines, fees, and penalties are all not dischargeable in a bankruptcy.

The question becomes what happens if the government takes over health care?  If you are in some government collective that provides health care and you owe them money for medical services and you cannot pay then what happens?

Currently with our private system all of those medical debts are dischargeable because they are owed to some private hospital or doctor.  If you owe the money to the government collective then I predict that these debts will not be dischargeable like all the other government debts.  You will have therefore lost the benefit of bankruptcy that you had before when health care was private.

These government collectives, pools, or exchanges will be a reality and they will be run by the government.  Since government is supposedly for the benefit of the people, the money you owe them will not be dischargeable in bankruptcy and you will be stuck owing them regardless of what you do.

If they say “it’s affordable health care” and you still can’t afford it then what will you do?  When you owe money to the IRS they can lien and take any property they want from you including your wages.

Keep this in mind with government health care.

I am a San Diego bankruptcy attorney.  For further information please visit my websites at or  Or call my office for a free consultation at (619) 702-5015.

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to:

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