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It is difficult to know exactly how many because often people will use creditcards to pay off medical or other bills when they are struggling with debt, and so the reason on a survey may be “creditcarddebt” even though the situation began as medical debt. We are here to help.
Chapter 7 bankruptcy liquidates your assets in order to discharge unsecured debts, such as medical bills and creditcarddebt. If you’re eligible to file under Chapter 7 and only have unsecured debts, this may be your best course of action. If you fail to make your payments, the lender can recover the collateral.
If you have a large amount of creditcarddebt or high medical costs that you can’t pay, Chapter 7 may allow you to start again. Chapter 7 is a disaster when it comes to secureddebt. . Chapter 7 will not assist you if your primary source of debt is a mortgage, auto loan, or other kinds of debt.
If you are seeking to discharge unsecured debts like medical debts, creditcarddebts and unsecured loans, then you need to file for Chapter 7 bankruptcy. However, if you are dealing with secureddebts like a mortgage or a car loan, then you need to file Chapter for 13 bankruptcy.
You are not allowed to have more than $465,275 of unsecured debt (such as creditcard or medical debt) or more than $1,395,875 of secureddebt (such as a house, property, or vehicle). Under Chapter 13 Bankruptcy, you have time and a plan in which to repay your debts. Most federal student loans.
While the process can seem daunting, partnering with the right legal team can make all the difference in navigating the complexities of the law and securing the fresh start you deserve. When You Have Too Much Debt to Handle Sometimes debt can pile up to the point where making even minimum payments feels impossible with your current income.
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