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4.  Medical Bills

Even if you have medical insurance, medical bills resulting from a serious illness can average over $13,000.00 ($36,000.00 for cancer patients).

Even after they are discharged you can still make payments on your medical bills.  But the payments would be made on your terms, not on the terms dictated to you by the moneylenders.

3.  Negative Auto Equity

A new car depreciates at roughly 20% per year.  If you drive a new car, chances are you are upside-down on the note.

Bankruptcy gives you the option to redeem the collateral.  You can pay the moneylender what the car is actually worth, and take full title to the car.  No more negative equity!

2.  Payday Loans

Payday loans, auto title loans, cash advances, and similar unsecured loans generally have an APR of around 600%.

The key word is “unsecured”.  Payday-type loans are nearly always dischargeable, no questions asked.

1.  Credit Card Debt

The average cardholder carries nearly $16,000.00 in credit card debt, with an average interest rate of 29%.  That amount of debt is really not possible to pay off.

Credit card debt is nearly always dischargeable in bankruptcy, unless you have been using your cards to purchase tropical islands or other ostentatious luxuries.