Walker & Walker Law Offices, PLLC Logo
Call Or Text Us Today: 612-824-4357
VIDEOS Free Book Free Case evaluation
Menu
Call / Text
Walker & Walker Law Offices, PLLC
Free Book Free Case evaluation VIDEOS
612-824-4357
  • Home+Expand
  • Attorneys+Expand
    • Curtis K. Walker+Expand
    • Andrew C. Walker+Expand
    • Ethan Mustonen+Expand
    • Rick P. Lee+Expand
    • Andrew T. Johnson+Expand
    • Christopher Anderson+Expand
    • Jackson Wiese+Expand
    • Peter Lawin+Expand
  • Chapter 7+Expand
    • 8 Steps to Filing Bankruptcy+Expand
    • Qualifying for Chapter 7 Bankruptcy+Expand
    • Means Test+Expand
    • 341 Meeting+Expand
    • Advantages and Disadvantages+Expand
  • Chapter 13+Expand
    • 9 Steps to Filing Bankruptcy+Expand
    • Qualifying for Chapter 13+Expand
    • Means Test+Expand
    • 341 Meeting+Expand
    • Advantages and Disadvantages+Expand
    • Modification to Bankruptcy Plan+Expand
  • $0 Down Bankruptcy+Expand
  • Bankruptcy Learning Center+Expand
    • 50 FAQ+Expand
    • Bankruptcy Basics+Expand
    • Before Bankruptcy+Expand
    • After Bankruptcy+Expand
    • Benefits of Bankruptcy+Expand
    • Credit Report+Expand
    • Debt Collection+Expand
    • Legal Updates+Expand
    • Student Loans+Expand
    • Definitions+Expand
    • Debt Options Calculator+Expand
    • ARE MY STUDENT LOANS DISCHARGEABLE?+Expand
  • Testimonials+Expand
  • Blog+Expand
  • Make A Payment+Expand
  • Contact Us+Expand
    • Minneapolis Bankruptcy Attorneys Office+Expand
    • St Paul Bankrutptcy Attorneys Office+Expand
    • Blaine Bankruptcy Attorneys Office+Expand
    • Brooklyn Park Bankruptcy Attorneys Office+Expand
    • Rochester Bankruptcy Attorneys Office+Expand
    • Mankato Bankruptcy Attorneys Office+Expand
    • Duluth Bankruptcy Attorneys Office+Expand
    • Leave Us A Google Review+Expand

Bankruptcy Stops the Obamacare Tax Penalty for Going Without Insurance

obama care logo

Bankruptcy is a very useful thing.

You may already no that it:

  • Eliminate many types of consumer debt with the stroke of a pen
  • Protect almost all of your assets
  • Puts you on the path to rebuilding credit

But did you also know it can stop the Obamacare tax penalty for people who didn’t have health insurance?

WHAT IS THE OBAMACARE TAX PENALTY FOR PEOPLE WITHOUT HEALTH INSURANCE?

Part of Obamacare, or the Affordable Care Act, is that all Americans are required to purchase a health insurance policy.

This is called the “Individual Mandage.”

Anyone who doesn’t have health insurance must pay a tax penalty unless they have a special “hardship” going on in their life.

There are many hardships that can help people who didn’t have health insurance avoid owing taxes at the end of the year.

The tax penalty or fee is also called the Shared Responsibility Payment.

If you didn’t have health insurance for some of the months in 2018 or earlier, and don’t have a special hardship going on in your life, then you have to pay the penalty along with your taxes when you file taxes in April.

If you would get a refund normally, then the IRS will keep your refund and apply it to the Shared Responsibility Payment.

HOW DOES Filing BANKRUPTCY HELP?

The Bankruptcy Hardship Exemption is particularly useful because it works if you filed bankruptcy in the last 3 years.

This is a good law because people filing Chapter 7 Bankruptcy or Chapter 13 Bankruptcy don’t usually have much in savings to be able to afford expensive health insurance premiums.

If someone already had to file bankruptcy, why hit them  with an extra tax penalty on top of the bankruptcy, right?

Even if you filed in 2016 or 2017, you can still use it to avoid owing the 2018 Shared Responsibility Payment, so bankruptcy is a very powerful thing in this respect.

WHAT HAPPENS IF I FILED BANKRUPTCY ON MEDICAL BILLS?

Even if you filed bankruptcy on medical bills, you can still claim the bankruptcy as a hardship to avoid owing the Obamacare tax penalty.

This makes perfect sense, right?

If you have to go to the doctor or to the hospital when you don’t have health insurance, then you will probably have lots of medical debt.

Medical bills are one of the most common reasons that people file bankruptcy, especially for people who are uninsured, or people whose insurance doesn’t cover the medical bills.

The idea of bankruptcy is to give people a financial fresh start.  If you had to file a medical bankruptcy, and then got hit with a tax penalty right afterwards, it  wouldn’t be much of a fresh start, would it?

Conclusion

If you haven’t had health insurance in 2018, and also have debt or judgments or garnishments, why not come for a free conference with Walker & Walker Law Offices, PLLC?

We can help you get out of debt and avoid owing taxes for Obamacare all in one transaction.

It’s easy! Just Contact Us at 612-824-4357 to set up your free attorney consultation.


Related Posts

#WinWednesday: $150,000 in Debt Gone — Including $100K in Student Loans and $50K in Medical & Personal Debt#WinWednesday: How We Wiped Out $150,000 in Student Loans and Personal Debt Through Bankruptcy#WinWednesday: Minnesota Bankruptcy Attorney Discharges $190,000 in Debt — Including $165,000 in Student LoansBankruptcy vs. Debt Settlement: What’s the Better Choice for Your Financial Future?

Request A Free Consultation

Help Me Get A Fresh Start

  • By signing up via text, you agree to receive recurring automated messages at the phone number provided. Consent is not a condition of purchase. Reply STOP to unsubscribe. Message frequency varies. Msg & data rates may apply. Your privacy is our priority. Your information will not be shared.

  • Should be Empty:

By signing up via text, you agree to receive recurring automated messages at the phone number provided. Consent is not a condition of purchase. Reply STOP to unsubscribe. Message frequency varies. Msg & data rates may apply. Your privacy is our priority. Your information will not be shared.

Client Reviews

Walker Law Logo

Monday – Thursday: 8:00am – 5:30pm

Friday: 8:00am – 4:30pm

Hours vary by location

Evening Appointments Available

Minneapolis

4356 Nicollet Ave.
Minneapolis, MN 55409

612-824-4357 Get Directions

Brooklyn Park

7240 Brooklyn Boulevard Suite #210
Brooklyn Park, MN 55443

763-444-4357 Get Directions

St. Paul

1112 Rice Street,
St. Paul, MN 55117

651-731-4357 Get Directions

Blaine

607 County Rd. 10 NE Suite #204
Blaine, MN 55434

763-780-4357 Get Directions

Mankato

100 Warren St, Suite 300-119,
Mankato, MN 56001

507-497-9179 Get Directions

Rochester

4229 W Frontage Rd Ste 5B
Rochester, MN 55901

507-738-1100 Get Directions

Duluth

4202 E Superior St, Suite 102,
Duluth, MN 55804

218-979-4220 Get Directions

Walker & Walker Law Offices, PLLC, designated a debt relief agency by an Act of Congress and the President of the United States, has proudly assisted consumers seeking relief under the U.S. Bankruptcy Code for over 40 years.

This website is for informational purposes only. The information contained should not be interpreted as legal advice. Only a local attorney with actual knowledge of your personal situation can give you legal advice. Viewing this site website does not create an attorney/client relationship.

Facebook Twitter Google

© 2025 by Walker & Walker Law Offices, PLLC. All rights reserved.

Minneapolis Web Design | Privacy Policy | Terms and Conditions | Locations | Back to Top