Does Chapter 7 eliminate medical and credit card debts? Yes. I would say a majority of my clients filing for Chapter 7 bankruptcy relief are doing so to rid themselves of medical and/or credit card debt. One of the reasons people file is to get rid of credit card debt because credit card industry as a whole is steadily increasing the interest rates- even on people who are making their monthy payments.

I am seeing more and more clients who want to pay their credit card debts but need a little time for a crisis in their life to pass. In my experience the credit card industry has been unwilling to help people who are willing to pay but need a little time.