Many people call me who want to file a medical bankruptcy. Technically, there is no such thing as a medical bankruptcy. Individuals are generally filing either a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy. Chapter 7 Bankruptcy is where you are getting rid of most of your debt without having to pay it back. You may have to surrender unprotected assets in exchange for getting rid of the debt. Chapter 13 Bankruptcy is a repayment plan where you are paying back some or all of your debt. You will generally keep your assets and you may keep your unprotected assets depending on how much you are paying to your creditors.
If you have a lot of medical debt, you might file a Chapter 7 Bankruptcy to get rid of the debt. That is what some people will refer to as a medical bankruptcy.
You should always speak to an attorney regarding your situation before you decide to file for bankruptcy.