Unfortunately, many people can end up with medical bills and credit card bills and be trapped in a vicious cycle of both. Fortunately, personal bankruptcy options can help with these forms of unsecured debt.
Both medical debt and credit card debt are considered forms of unsecured debt. As a result, these are the types of debt that are most easily addressed by the bankruptcy process. The bankruptcy process can help end harassing creditor calls by eliminating the filing party’s debt and can provide help with the stress and strain associated with medical and credit card debts. In addition, once the filing party has filed for bankruptcy protection, an automatic stay provides immediately relief preventing any creditor collection actions while the bankruptcy process progresses.
There are two types of personal bankruptcy protection for those seeking debt relief to consider. There are requirements associated with qualifying for each so it is helpful to be familiar with what those are. A Chapter 7 bankruptcy is a liquidation bankruptcy option that allows the filing party to liquidate non-exempt assets to repay creditors. The Chapter 13 bankruptcy process is a reorganization bankruptcy process. Either option may be able to help. As part of the process, creditors are placed in categories including unsecured creditors which have less of a priority.
Personal bankruptcy protection options exist to help struggling consumers who are living with the stress of overwhelming debt every day. For that reason, those seeking debt relief and a fresh financial start should consider the various options available to them that may help.