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Chapter 7 bankruptcy could help those with medical debts

Debt has become a severe problem not only for many Louisiana residents but for numerous people across the country. Credit card debt in particular has been shown to be common, whether due to simply overspending one's budget or having to cope with extensive medical expenses. There may be several options to help eliminate these debts, one of which is filing for Chapter 7 bankruptcy.

Estimates reveal that the average American household is carrying a balance of about $15,000 to $16,000. Recent data gathered by NerdWallet shows that for many, medical expenses are to blame. Treatment costs have increased faster than the average income growth over the past few years. This has resulted in many putting their medical bills on their credit cards. Because credit cards often have high interest rates, this can lead to even more financial problems.

Those who are struggling to pay bills may be able to find relief through filing for Chapter 7 bankruptcy protection. Under this form, an person's debts are wiped out and all nonexempt assets are liquidated. Additionally, an automatic stay is put into place that blocks creditors from continuing to seek payments. Though such an event may remain on a person's credit report for a number of years, credit scores typically rise after a few months.

Debts can be a tremendous burden on individuals and families. Fortunately, many may be able to find a fresh start from their overwhelming financial obligations through filing Chapter 7 bankruptcy. Anyone who is interested in learning more about this and other forms of bankruptcy could consult an experienced Louisiana attorney. In addition to providing more information, an attorney could also aid in the filing process.

Source: fool.com, "Is This the Reason U.S. Credit Card Debt Keeps Climbing?", Maurie Backman, Dec. 20, 2017

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