Bankruptcy Attorney in Colton

Hedtke Law Firm represents Colton residents in Chapter 7 and Chapter 13 bankruptcy. Colton sits where the I-10 and I-215 meet, and our Fontana office is a short drive west. Consumer cases from San Bernardino County are filed in the United States Bankruptcy Court for the Central District of California. The first consultation is free.

Medical Debt Is a Colton Problem in Particular

Colton is home to Arrowhead Regional Medical Center, San Bernardino County’s public teaching hospital and one of the region’s major trauma centers. Which means a lot of people in and around Colton have been through a serious medical event — and in the United States, a serious medical event and a serious debt problem are frequently the same story.

Here is the part people do not realize: medical debt is unsecured debt. In bankruptcy it ranks alongside credit card balances, and it is fully dischargeable in Chapter 7. There is no special protected status for a hospital bill. If medical bills are the reason you are considering bankruptcy, you are in the most straightforward category there is.

Two things worth knowing before you act:

• Do not pay medical debt with a credit card or a medical credit line if bankruptcy is on the table. You convert dischargeable debt into debt that may attract scrutiny for recent use, and you gain nothing.
• Check for charity care first. California hospitals operate financial assistance programs, and eligibility is broader than most people assume. Some of the bill may not be owed at all.

When a Hospital or Collector Sues

Unpaid medical accounts get sold to collection agencies, and collectors sue. Once there is a judgment, the creditor can garnish wages and levy a bank account. Filing bankruptcy triggers the automatic stay, which stops both immediately, and the underlying debt is then discharged.

If a collector is calling about a debt you do not recognize, do not assume it is yours — medical billing errors and misapplied accounts are common. What to do about a debt that is not yours →

Which Chapter Fits

Chapter 7 discharges medical bills, credit cards, personal loans and most judgments, usually within a few months, while California exemptions protect your car, household goods and home equity.

Chapter 13 is for higher earners or homeowners who need to cure mortgage arrears over a three-to-five-year plan.

Chapter 7 →  |  Chapter 13 →

Colton Bankruptcy Questions

Can bankruptcy wipe out hospital bills?

Yes. Medical debt is unsecured and fully dischargeable in Chapter 7. It is treated the same as credit card debt.

What if I am still receiving treatment?

Timing matters. Bankruptcy discharges debts that exist on the filing date — treatment billed afterwards is not included. If you have ongoing care, that is a reason to discuss timing carefully rather than filing immediately.

Will I lose my car if I file in Colton?

Usually not. California exemptions protect vehicle equity up to a set amount, and if you are current on a car loan you can generally keep paying and keep the car.

My bank account was frozen. What now?

A creditor with a judgment can levy an account. The automatic stay stops further levies once you file, and in some circumstances recently taken funds can be recovered. This is time-sensitive — call as soon as it happens.

Free Consultation for Colton Residents

Bring six months of pay stubs, your last two tax returns, a list of your debts including medical accounts, and any court papers or collection notices.

Hedtke Law Firm
7426 Cherry Ave, Suite 210-312, Fontana, CA 92336
Phone: (909) 457-0054
Monday to Friday, 9:00am – 6:00pm

Call (909) 457-0054

Also serving Fontana, Rialto, Jurupa Valley and Bloomington.

General information about California bankruptcy law, not legal advice for your specific situation.