Just about anyone can find themselves in financial turmoil and be forced to file for bankruptcy, but there are some circumstances that make a person more prone to filing. A variety of factors can lead to financial struggles, but if you are dealing with any of these three types of debt, you could be a better candidate than other for bankruptcy:
Unpaid Medical Bills
Nothing causes a financial burden faster than an unexpected injury or illness. Despite changes in insurance coverage in recent years, many people still find they are unable to afford the cost of medical care. As a matter of fact, medical debt is one of the leading causes of bankruptcy.
Fortunately, bankruptcy can go a long way in helping you overcome medical debt. If you file for Chapter 7 bankruptcy, your medical debt gets discharged. In Chapter 13 bankruptcy, your medical bills are included in your payment plan, giving you more time to pay off what you owe. In some cases, the total debt is even decreased.
Regardless whether you choose Chapter 7 or Chapter 13, filing for bankruptcy can help you better manage medical debt. You can learn a bit more about the difference between Chapters 7 and 13 here.
Mortgage Debt
If you are like most people, your mortgage loan is your biggest debt. Unfortunately, many have mortgage loans they are no longer able to afford. Sometimes this is caused by ballooning payments and bad financing, while other times it’s tough to pay a once-affordable mortgage loan because of job loss or other unexpected debts.
Regardless why your mortgage is now a financial burden you can’t afford, filing for bankruptcy can help. Many homeowners choose Chapter 13 bankruptcy because it allows them to remain in their homes and catch up on payments, but there are some rare cases in which Chapter 7 filers might be eligible to keep their homes, too. It’s important to speak to an experienced bankruptcy attorney about your mortgage debt and your reasons for filing for bankruptcy, so he or she can help you make the best choice.
Credit Card Debt
Credit card debt is a common problem and frequent reason people choose bankruptcy. Credit card companies tend to be generous when it comes to extending credit, but are even more aggressive when it comes to collecting those debts.
Chapter 7 bankruptcy can mean the elimination of all credit card debt. Many people opt for bankruptcy for the sole purpose of clearing credit card debt and making a fresh financial start.
If you do not qualify for or prefer not to file for Chapter 7, Chapter 13 can also help you handle credit card debt. Your debt becomes part of your repayment plan along with your other debts, giving you more time to pay what you owe.
Are your financial struggles out of control? Are you looking for an answer, but you aren’t sure where to turn? I can help. Contact R. Flay Cabiness, II, P.C. at (912) 554-3774 (Brunswick, GA); (912) 375-5620 (Hazlehurst, GA) or; (912)-554-3756 (Jesup, GA) to schedule a bankruptcy lawyer consultation or to discuss the details of your situation.
