There are many forms of debt that can land individuals and families in trouble, but insurmountable credit card debt is among the most common reasons people seek bankruptcy protection. For many, credit card payments take a back seat as they try to make ends meet; affording the basics of food, shelter and transportation to get back and forth to work often leaves little left over to pay for other expenses. Credit card holders not only get behind on payments, but are assessed late fees and higher interest rates, which can snowball into considerable debt over time.
For those looking for a way to tackle credit card debt, Chapter 7 bankruptcy is the preferred way because debts are often eliminated in the bankruptcy. However, if an individual or family cannot pass the means test to qualify for chapter 7 bankruptcy, chapter 13 bankruptcy allows filers to get on an affordable repayment plan over a 3 to 5 year period, where remaining debt is often discharged at the conclusion of the payment plan.
If you have significant credit card debt and are having trouble making regular payments, it is important to discuss your situation with a bankruptcy attorney before the situation deteriorates further. Developing a plan to defeat credit card debt and get a fresh start is possible with the help of an experienced attorney who can evaluate your situation and advise you on what strategy is best for you and your family. Contact Charles E. Covey for a free consultation at 309-674-8125.