Struggling with credit card debt is more common than you might think, and in some cases, may feel impossible to get out of. If you’re in this situation, bankruptcy can be a tool to help you get your debt under control.
How Bankruptcy Can Address Credit Card Debt
There are two main paths for dealing with credit card debt: Chapter 7 and Chapter 13. Chapter 7 allows you to discharge most unsecured debts, including credit cards. On the other hand, Chapter 13 involves restructuring debts into a manageable repayment plan and potentially reducing your total debt load. By understanding these differences, you can take a more active role in choosing the option that best suits your financial situation.
– Experian
When Is Bankruptcy A Good Option For Credit Card Debt?
Deciding to file for bankruptcy is a significant decision influenced by several factors:
- Debt Size: If your debts far exceed your ability to pay, bankruptcy might be a viable option.
- Impact On Your Finances: Consider how bankruptcy might affect your credit and future financial opportunities.
- Other Alternatives Haven’t Worked: If you already tried debt consolidation or negotiation and you’re still saddled with debt, bankruptcy could be the next step.
- Financial Stability: Evaluate whether you have enough income to support a Chapter 13 repayment plan or if Chapter 7 is more suitable based on your situation.
Our Lawyers Are Here To Help
Going through bankruptcy is complicated, but you don’t have to do it alone. Our bankruptcy lawyers are here to assess your situation, help you understand your options, and start anew financially. Please contact us to schedule a free consultation today.
