Many people in New Jersey may not want to apply for a loan because of the penalties that may arise if they default. Sometimes, a debt obligation is unavoidable, like those that are incurred in a medical emergency. Considering the troublesome nature of medical expenses, the law also protects people from being harmed by the consequences of medical debt.

According to research done by the American Cancer Society, there are more than 137 million people in the United States struggling to pay their healthcare bills. The study further confirms that around 42 percent of Americans who undergo cancer treatment use up their life savings within two years of treatment.

Similarly, a survey by Kaiser Family Foundation and the Los Angeles Times found that around 54 percent of people say that they have a family member suffering from a chronic ailment, such as hypertension, diabetes, or asthma. The survey suggests that employer-based insurance programs are often insufficient. Uninsured Americans, who struggle to keep up with soaring medical expenses, are the worst affected group.

These debtors may become victims of creditor harassment. In order to avoid this harassment and get out of debt trouble, people can opt to file for bankruptcy. A personal bankruptcy filing can effectively stop unwanted actions from creditors and may provide help to discharge debts. By choosing to file for Chapter 13 bankruptcy, debtors may be able to relieve some of their debt and get a fresh financial start. A bankruptcy attorney can answer any questions you may have.