In the past, bankruptcy has been viewed with a negative stigma – almost as if it was taboo to speak of bankruptcy and situations involving overwhelming credit card debt. Many people were once embarrassed by this legal action, but soon benefited from the many advantages of finding a debt free future. Over the years, as the economy started to take on a downward trend, many more people have begun filing their bankruptcy petitions in U.S. Courts all around the country. As many people began to realize the great benefits that this legal process entails, the negative vibe surrounding bankruptcy slowly disintegrated. However, not all people view bankruptcy as a positive entity. In fact, many people are still turned away from the idea of entering into a bankrupt status. If you are one of the many individuals who is worried about the bankruptcy process or is unsure if bankruptcy is the true solution to your credit card debt, there are other answers out there for you!
First and foremost, it will be very important that you speak with your local bankruptcy attorney right away. Your attorney will be able to review your case very thoroughly and determine if bankruptcy or another option is truly the best solution for your unique case. The lawyer you choose to work with will look at the different types of debt you owe, such as secured and unsecured debts, to find the right answer for your financial situation. Many studies have been conducted regarding credit card use and debts throughout the United States. These studies often conclude that individuals are willing to spend 47 percent more on average than if they had used cash to make the purchase. Whether you use a credit card for the benefits or rewards that they offer to frequent users (i.e. airline miles and cash back options), it is very easy to accumulate these overwhelming amounts of debt in a short period of time.
With an estimated 54 million American households having credit card debt, it is no wonder that many people are turning to bankruptcy and other alternative solutions to manage their personal economic situation. Studies have estimated that the average household debt is approximately $15,788 for each in-debt household in America, which surmounts to the total amount of debt owed on credit cards in our country - $852.6 billion. If you are an owner of one or more of the 576.4 million credit cards in the United States and you owe money on your credit card, you are strongly advised to seek the help of an attorney to determine the best possible solution for your unique case.
During this disconcerting time in your life, no person will help you more than your local bankruptcy attorney. They will inform you on the rights you have as a debtor and will review each and every option that is available to you. You can choose to eliminate a large portion of the debt through bankruptcy, Chapter 7 or Chapter 13, or alternative choices such as debt negotiation or debt settlement with the help of a legal representative. Chapter 7 bankruptcy is a process that entails a quick liquidation of unsecured debts, including your credit card debt. After talking to an attorney and filing your petition for Chapter 7, no creditor or debt collector for your credit card debt may contact you anymore. You legally will not owe this debt anymore! Other types of debt that Chapter 7 bankruptcy eliminate include other unsecured loans, medical bills, and possibly even broken leases.
A second option that is offered to debtors throughout the country includes Chapter 13 bankruptcy under the United States Bankruptcy Code. Under this section, a debtor can use this petition to kill two birds with one stone, figuratively speaking. It can help a debtor come back from an overwhelming amount of debt, in addition to saving their home from foreclosure. This type of bankruptcy filing is one that will eliminate most unsecured debt – including credit card debt – and leave the debtor more capable of paying off other debts they may have.
Other alternative options that are generally available for debtors throughout the country are those methods that nearly mimic the debt elimination process available through bankruptcy. These include debt settlement, debt negotiation, and other similar processes. The alternative options that are available should be accompanied by an attorney who is well-versed in this area of the law, as debt collectors and creditors will be ready to do anything they can to ensure that the debt is entirely collected. A debt collector may tell you that you are not allowed to negotiate the debt or that you do not have rights as a debtor; they are incorrect. In fact, the debt collector may say anything they can to prevent you from taking legal action and lawfully eliminating your debt.
If you owe money on a credit card, do not wait any longer before talking to your local bankruptcy attorney. There are many options for you out there in regards to credit card debt, and your attorney will be able to help. Don't succumb to the debt collector's vain practices and methods – you have rights under the Fair Debt Collection Practices Act and other federal statutes. The attorney that you hire will be the one who can inform you on your rights and the right solution to use to effectively tackle your unwanted debt.