Credit Card & Medical Debt

Credit card debt, medical debt, and general unsecured loans are the most common debts anyone files bankruptcy on. Bankruptcy allows you to discharge all of these types of debt.

Credit card debt generally accumulates from the disparity between income and spending. In many cases, people throw onto the credit card unexpected medical bills, emergency expenses, and even everyday spending, such as on groceries. Over time this behavior results in debt that may be difficult to pay off without an increase in income or a reduction in living expenses.

Medical debt is a type of unsecured debt and usually occurs out of a health emergency such as an unexpected catastrophic illness or injury.  With inadequate health coverage, expenses go uncovered by insurance or social programs and the burden accumulates on individuals and their families.  Bankruptcy allows for discharging medical debt and most people have no issues continuing their medical care, even when they are wiping out medical debt from a current provider.

When you file bankruptcy, you must include all unsecured debt. You are not able to choose which debt gets included in the bankruptcy.