Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - Does Bankruptcy cover medical bills? - My brother recently did some stupid things. He let his health insurance lapse and then he let an ulcer grow on his foot to the point that he had to have it amputated. There is no state health insurance in AZ and he is not working. My parents are letting him live rent free in a house they own, but he has no income other than handouts from them. Can he declare bankruptcy to not pay the hospital bill? -