Bankruptcy an option for those with medical credit card debt

Bankruptcy an option for those with medical credit card debt

Once someone is caught in a web of debt here in Arizona, it may seem impossible for that person to escape. Endless creditor harassment and unrelenting interest rates trap them into debt cycles from which there seems no relief.

Such has been the case with many recent developments involving medical credit cards. The worlds of health care and finance combined forces and began pushing lines of credit and credit cards onto patients, offering a way for them to pay for medical expenses that health insurance won't cover. This is a very tempting deal for senior citizens in particular, because it allows them to undergo certain basic treatments they would otherwise avoid due to the treatments not being covered by insurance.

Unfortunately, these medical credit cards have steep interest rates that kick in following the relatively brief promotional period. Once this happens, patients often find themselves wrecked with debt, unable to pay off the ceaseless interest rates their creditors demand of them. These patients, often senior citizens dealing with myriad medical costs, worry about being stuck with these debts for the rest of their lives.

Thankfully, there is an escape route. Residents of Mesa who find themselves in these unfortunate situations have the option to file for Chapter 13 bankruptcy, and thereby get relief from their seemingly unending debt. Chapter 13 bankruptcy allows debtors to, rather than sell off all their assets, repay them by means of a repayment plan. This plan outlines how the debtor will pay off the creditor, which usually consists of allotting a portion of their paychecks to go to the creditor until the debt is paid off. No matter the cause of debt, an attorney can help guide those seeking a fresh financial start through this process.

Categories