Credit Card & Medical Debt
If you lost your job and had to run up your credit cards to survive, or if you were very sick or injured and spent a lot of time in the hospital and at doctor's offices, you may have a lot of unsecured debt you are being pressured to pay back.
Credit card debt and outstanding medical bills are both considered unsecured debt, meaning you have not put up any collateral against them so if you don't pay them, all that will happen is you will accrue interest on the payments and the creditors will try to demand their money. As a last resort, they can sue you, but only for the amount you owe.
Because bankruptcy wipes out unsecured debt, filing a bankruptcy case is a good way to get rid of increasing credit card debt and medical bills. We can help you determine which form of bankruptcy is most suitable for your situation and make a plan for how to carry out relieving you of this constant financial strain. We take every aspect of your life into consideration to customize the best solution for you. In many situations, a person may be able to completely eliminate their medical and credit card debt without paying back a penny of it in either chapter 7 or chapter 13.
Call our Natchez MS Bankruptcy Lawyer at 601-500-5533 or contact us online to learn more about how you can discharge debt and get a fresh start here in Mississippi.Hazlehurst, MS Bankruptcy Lawyer
Filing for Chapter 7 bankruptcy will wipe this debt out entirely. The process takes about three to six months. If you need a fast, simple way to get rid of your unsecured debt, this may be the way to go.
If you are not eligible for Chapter 7 because you make too much money or you have too many assets, you may be able to file for Chapter 13 bankruptcy. Our lawyer, Thomas C. Rollins, will put together a payment plan for you, which will go to pay back your creditors over a three- to five-year period. At the end of that time, whatever unsecured debt is remaining will be discharged. In many chapter 13 cases unsecured debts are not paid anything and the debt is discharged.
Many times credit cards have extremely high interest rates. Unpaid balances grow substantially over time. One major benefit of chapter 13 is that the interest will stop accruing once you file a chapter 13 case. In many cases, credit cards will not be paid anything in a chapter 13 case. In other times, the credit cards must be paid, but they are paid at 0% interest. Eliminating the interest is a huge benefit even if the entire debt cannot be eliminated. Eliminating the interest can sometimes save our clients thousands of dollars. We can usually quote you an estimated chapter 13 plan payment at your free initial consultation.