Credit cards are used by most people to pay for everyday purchases as well as unexpected bills such as car repairs, medical bills or even mortgage payments. When people have to spend more than they earn, a dangerous downward cycle can lead to a breaking point. Many people file bankruptcy as a result of piling up excessive credit card debt because of a sudden change in their circumstances; job loss, health issues, divorce or death of a family member. If you have been falling behind and trying to figure out how to handle too much debt, it may be a good time to contact a bankruptcy attorney to ask questions and begin to understand how the law may relieve your debt.
Bankruptcy is a legal method that allows debt relief for people in need of immediate debt relief. Filing bankruptcy is a very effective way for a person to stop creditor harassment and to get back on the right financial track. Before filing bankruptcy it is important to understand how it works.
How bankruptcy eliminates credit card and medical debts:
Credit Card Debt Discharge
Credit card debts will be completely discharged in most bankruptcy cases. The credit cards will need to be canceled so that they will not be used again. The complete elimination of all unsecured debts happens during both chapter 7 and chapter 13 bankruptcy filing
Medical Debt Discharge
Medical debts can be eliminated by filing bankruptcy in addition to completely eliminating your credit card debt. Medical debts are commonly wiped out in both Chapter 7 and chapter 13 bankruptcies.
A Los Angeles Bankruptcy Attorney can advise you whether to file chapter 7 or chapter 13 bankruptcy. Chapter 13 requires a payment plan to pay back a portion of debts such as a credit card or medical bills that are affordable. Whether a person needs to pay back credit cards and medical bills depends on factors such as disposable income, and assets owned, like cars or real estate.
To get started eliminating your credit card debt today, it is best to talk to a Bankruptcy Attorney in Los Angeles to answer all your questions and explain the process. For personalized help contact our bankruptcy attorney for immediate help.