Bankruptcy, Credit Card and Medical Debt
The media might like to portray it as such, but the truth is not everyone who declares bankruptcy, or suddenly can’t manage their credit is irresponsible, incompetent or unable to live up to their word. Sometimes life just gets in the way of managing your finances. In fact, medical expenses are a primary and common reason that can drive people to file bankruptcy nationwide. Let’s face it – health care costs can be very expensive, and doubly so if you lack adequate health insurance.
How Can This Happen?
At the same time, credit card companies are very adept at encouraging cardholders to spend beyond their means and carry a balance. Combine these factors with interest and fees, and an unexpected illness can mean your physical recovery is just the beginning of your total recovery. In fact, your financial recovery may take more time, effort and work than you had imagined. Declaring bankruptcy can be a necessary step in your overall rehabilitation.
What Are my Options For Credit Card and Medical Debt?
Bankruptcy is not something to be entered into lightly. The repercussions are lasting and can impact many future decisions you might want to make, and can even affect your employment prospects. However, there are times when it’s the right choice. At Sheppard Law Offices, we’ll meet with you to make sure you receive personalized, custom advice. Before that though here’s some information that could prove useful in your decision making in what can be a very stressful time.
Is Bankruptcy an Option to Erase my Medical and Credit Card Debt?
First, you should know that it is possible to eliminate medical and credit card debts through bankruptcy.
Chapter 7 vs. Chapter 13 for Credit Card and Medical Debt
Chapter 7 bankruptcy allows you to eliminate your credit card and medical debt (some exceptions may apply, such as an intentionally making large purchases on your credit card immediately before filing bankruptcy, which looks fraudulent). Another rare occurrence of a debt not being able to be discharged would be lying on your credit application get credit. However, fortunately, in our experience these situations are rare.
Alternatively, if you file Chapter 13 bankruptcy, you may have to repay your creditors a fraction of the total, but these amounts will still be significantly less than your original amounts that you owe.
What Do I Do Now? I Need Help.
We’ve helped many people – just like you – in Columbus and three other locations in Ohio and beyond, regain their financial freedom and alleviate the pressure they were under. Whether we’re helping you eliminate the debt through a Chapter 7 bankruptcy or re-organizing the debt through a Chapter 13 bankruptcy process, we’ll be there with you every step of the way.
As a law firm with primary of focus on bankruptcy and tax laws, we are the best choice to listen to your story, give advice on your best viable options, and represent you to the fullest extent. Whether you would like to start with an in-person consultation, a telephone chat or over the web, all of us at Sheppard Law Offices Company, L.P.A. are on your side and look forward to hearing from you soon. Call us at (614) 523-3106.