A medical bankruptcy is a bankruptcy that's filed when a majority of the debts are medical bills or medically related. Even with health insurance, sometimes the cost of a medical emergency can be staggering. The term "medical bankruptcy" arose for those types of people who have no alternative but to file for bankruptcy and discharge those medical bills because there's no opportunity to pay them. In the past several years, people have started to notice that the cost of healthcare and the lack of opportunity to have insurance started to collide. There's no special way to file a medical bankruptcy, it's simply a term used when a majority of the debts are medically related. Watch the video for more details.