Credit card bills are one of the most commonly held debts in America. The credit card debt industry has grown significantly in recent years, and too often it is the case that people need credit cards simply to survive and provide for their families. Add to that medical issues and the spiral downward escalates. Luckily, credit cards and medical bills are some of the easiest debts to have discharged in a bankruptcy case. Learn more about how credit cards can be managed in bankruptcy.
Credit cards in medical bills can overwhelm you. Before you know what hit you. And then, suddenly, you’re in a hole so deep you can’t get out.
I know, because I’ve been there. Over 20 years ago I fell off of the roof of my house, broke my back, and couldn’t work for a year. I had no insurance and had to live on credit cards. Before I knew it, my savings were gone and I had to borrow money just feed my family. I even made my house payment on a MasterCard.
If you look at your credit card bill, you’ll see that if you don’t charge another nickel and if you only make the minimum payments it will probably take you 30 years to get your card paid off. Most of what you paid will be interest, and a high interest rate, probably.
How many of these credit cards do you have?
And, even with insurance, any medical problem can spell financial disaster in short order.
Medical problems strike without warning, we are all at risk of being financially strapped just because we had the bad fortune to get sick.
You know, it’s ironic. My wife teases me all the time I try to eat healthy and watch my weight but, two years or ago, I was hospitalized twice, had two surgeries back to back, followed by a year of trips to the doctor just to figure out what was still wrong with me. I don’t drink, I don’t smoke, I try to be healthy but still I ended up repeatedly hospitalized with expensive medical treatment as a result.
Life happens. Bills pile up. Sometimes we have to rely on credit cards. Credit cards are easy to get But its too easy to get behind. And when you get too far behind, it’s easy to stick your head in the sand and pretend you’re okay when you’re really sitting on a ticking timebomb.
The longer you ignore the problem, the bigger it gets. And credit cards and medical bills collectors are suing faster and faster these days. But, there is a way out, several ways out, in fact.
Depending on who you owe and how much you owe and how far behind you are and other factors, you have a number of different options.
Sometimes simple credit counseling will help. In other cases we make a deal with creditors directly, or the collection companies if the bills have been turned over to collections.
I’ve saved thousands of dollars through debt negotiation for my clients. I’ve done it for myself and my family members as well. But if your debt is too much for your budget, if, after you pay for living expenses rent, house payment car food utilities etc., there just isn’t enough left to work with, then bankruptcy should be evaluated.
Many people think that you can’t discharge credit card bills or that if you wipe out medical bills in a bankruptcy you can’t ever go to the hospital ever again. Fortunately for all of us, none of this is true. Depending on how much income you have, and what your expenses are, I’ll show you what options make the most sense for you.
Remember, family comes first. Credit cards and medical bills get paid only after the family’s needs are met. If there’s only a little left, we can make a deal with creditors – or, if they won’t work with us, we’ll consider the next step which could be a bankruptcy.
But don’t believe for a second that your medical bills, credit cards, payday loans, signature loans and all kinds of unsecured bills somehow would not be wiped out in a bankruptcy.
Because bankruptcy is federal law, you have the legal right to wipe out these bills and your right to bankruptcy is still available to you, it cannot be limited or taken away from you.
Family comes first and you can wipe out all of these bills in bankruptcy if you need to.