Advanced medical care is truly a triumph of the technological age. Unfortunately, many of those advances have come with a hefty price tag. California patients often receive hefty bills after seeking treatment for serious medical issues, leaving many wondering if Chapter 7 bankruptcy could help them handle lingering medical debt.
When debt reaches a certain point, it can become an all-consuming concern, penetrating every aspect of a person's life. This can make some people in California feel desperate and willing to try virtually anything to free themselves from past-due notices and harassing creditors. However, consumers have options that do not require drastic measures. Chapter 7 bankruptcy is often quite effective at discharging debt.
Maintaining health insurance coverage is important for covering the high costs associated with seeking medical treatment. Unfortunately, insurance does not cover everything, and in many instances it may cover even less than what most people in California expect. This is why even those who have health insurance sometimes still turn to Chapter 7 bankruptcy to handle overwhelming medical debts.
Unlike in decades past, young adults now typically carry significant amounts of debt. Millennials in particular seem to be struggling under these massive debt loads. Although California millennials may actually fare slightly better than elsewhere in the nation, some may still benefit from debt relief through Chapter 7 bankruptcy.
Getting medical care for an illness or injury is often necessary, but expensive. Many people in California still pay significant out-of-pocket costs even when they have insurance. Although these debts may be relatively small -- sometimes as little as a couple hundred dollars -- they can still leave people in difficult financial straits. In some cases, Chapter 7 bankruptcy may be necessary for debtors to truly achieve relief from their debts.
College is expensive, but for many people in California, not having a degree can be even more costly. Most well-paying jobs require a college degree, which can cost tens of thousands of dollars. While these loans generally cannot be discharged in Chapter 7 bankruptcy, there are a few other options for some borrowers. However, federal programs that offered relief to defrauded students may be disappearing.
Borrowing against home and auto loans is much less appealing than it once was, and understandably so -- many California consumers saw the repercussions of these moves during the Great Recession. However, some people's need for quick access to cash during difficult times still exists. Personal loans are rapidly growing to meet this need, but there is a chance it could also lead toward Chapter 7 bankruptcy.
Deciding whether to take out student loans to attend a California college can feel like an impossible decision. Borrow money to earn a degree and a land a better, well-paying job but struggle to ever repay a loan? Or skip college and earn less over time, leaving a person perhaps no better off than where he or she started? Unfortunately there is no easy answer, and those who do borrow money for school often struggle to repay their debts. The inability to discharge most student loans through Chapter 7 bankruptcy complicates things, but there could be help on the horizon.
By the time that debt reaches an insurmountable point, most people in California will have reached their wit's end trying to repay what they can. Chapter 7 bankruptcy can be an effective tool for discharging debt and set people on a clearly defined path toward the best possible financial future. However, the process does involve possible asset liquidation, and not all types of debt are eligible for discharge.
Filing for bankruptcy is an effective way to discharge or repay unmanageable debts. However, too many people assume bankruptcy is not a good option because of the adverse effect it has on credit.