How Filing for Bankruptcy Protection Can Rid You of All Your Credit or Medical Debt
Recent news articles indicate that Americans are facing out of control credit card debt. Normal people have had to use their credit cards for necessities, like car repairs, home maintenance, and even groceries. You become late on one payment and the default (higher) interest rate kicks in, not to mention a substantial late fee.
Even worse are those medical bills. More than 60% of bankruptcies in the United States are driven by medical bills.
Luckily, both credit cards and medical bills are unsecured debt which can be discharged (eliminated) in a Chapter 7 case. The only time credit cards could be a problem is if you made a false statement on your credit application to obtain the credit cards, or you charged a certain amount just before you file. But, if you've gotten past due on your credit cards the way most people do, Chapter 7 will eliminate the credit cards, and definitely eliminate the medical bills.
In some cases, if your income is too high for a Chapter 7 case, filing for Chapter 13 bankruptcy protection will allow you to pay off your debt through one livable monthly payment to creditors at a lower amount and percentage rate over 3-5 years.
In our office, if you qualify for a Chapter 7 case, we make sure that you don't lose any property and certainly, don't run afoul of any recent changes. What happens if there are recent charges? Make sure to let us know, and we can "hold" the case for filing until after the appropriate time periods expires. Then we can file and get you out of debt!
To find out what your options are, Call the Denton Law Group today at (619) 458-3739 and schedule your free consultation.