The average American carries over $5,000 in credit card debt. Add that to factors like unemployment, medical illness or loss of a spouse and the things can quickly spiral out of control. A recent report suggested that medical debt is the number one cause of increased credit card debt and the reason for filing bankruptcy.
Dealing With Debt
The good thing credit card and medical debt is that they are both unsecured debts, meaning they are not tied to any asset in the event you default. While both can result in credit damage for missing a payment and maybe even wage garnishment for really delinquent debts, both are easily resolved in a Cincinnati bankruptcy.
Filing for Chapter 7 bankruptcy can quickly wipe away these two types of debt in a matter of months. While there are eligibility requirements for Chapter 7, most people experiencing enough hardship under these two debts generally qualify. The bankruptcy process is meant to be a tool of relief and restoration. Fears over liquidation and future credit should not stand in the way of resolving these debts and getting back on track. The bankruptcy process even protects much of your assets through exemptions, and even gives you a better chance at restoring your credit.