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Bankruptcy provides quick and permanent relief from medical bills

The numbers of consumers burdened with unmanageable medical debt are growing. People try numerous ways to resolve the problem but many find themselves unable to find a way out that will not strap them even further. Amazingly, people seem to be largely unaware that there is a governmental program that will quickly and totally wipe out consumer medical bills and credit card debt. In Texas and nationwide, the remedy is a consumer bankruptcy filing known as a Chapter 7.

Recently, a couple reported that they had about $65,000 in credit card debt. They amassed the debt over a period of years paying for medical expenses for their severely ill child. Some of the debt also built up paying mortgage payments and utility bills due to the high medical expenses. What isn't generally known is that many people who have runaway medical expenses are actually covered by medical insurance! This couple's situation of overwhelming debt is indicative of so many similar individuals and families who face chronic illness.

There are so many exclusions, co-pays and maximum coverage amounts that some people facing a severe illness in the family will eventually find themselves in overwhelming debt. Even with an income of $140,000, the couple with the ill child was unable to get a consolidation loan. Trying to pay the debt through a debt management plan is a bad idea that will more than likely place them on a struggling-for-survival status. This will only serve to prevent them from building a stable financial future, according to one debt counselor who analyzed the couple's problem.

In Texas and around the country, the most reasonable and logical remedy under these circumstances is a Chapter 7 bankruptcy filing. A large amount of credit card debt, or a whopping backlog of unpaid medical bills, can be discharged quickly and forever pursuant to the relief granted to every citizen by federal bankruptcy law. As discussed in this blog often in the past, there is a good possibility that a couple emerging from a Chapter 7 with no remaining unsecured debt can rebuild their financial stability reasonably quickly.

Source: wral.com, "Debt From Sick Daughter Left Us Buried," Steve Rhode, March 27, 2013

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