In the past few decades, credit card debt has become a ubiquitous feature of American life. As a result, consumers today have totaled billions of dollars in credit card debt, which has had positive and negative consequences.
The bad news, of course, is the high amount of debt. However, the good news is that all of this debt has prompted Congress to build a robust system of credit card debt laws that protect struggling consumers.
Personal bankruptcy is a potentially powerful option to reduce credit card debt. To determine whether filing for personal bankruptcy could be a wise choice for you, complete the form below to arrange a free, no-obligation consultation with a bankruptcy attorney.
Bankruptcy laws allow people to reduce their unsecured debts, including credit card debt. Here's how bankruptcy law could help reduce credit card debt:
If you're overwhelmed by credit card debt, you can explore bankruptcy and talk to a local lawyer about your options.
As mentioned above, there are two main types of personal bankruptcy that may allow you to reduce your credit card debt. These are Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 bankruptcy is designed for people who have relatively limited income and assets. It may allow filers to discharge some or all of their unsecured debts, including unpaid credit card bills.
On the other hand, Chapter 13 bankruptcy is generally better suited for people who have steady incomes or are at risk of losing valuable property. Under this form of bankruptcy, you are allowed to reorganize your debts in a manner that allows you to pay them off at a more reasonable pace and make payments to the bankruptcy trustee, rather than to each creditor.
To learn more about the relationship between credit card debt laws in your state and personal bankruptcy, connect with a local bankruptcy lawyer today. Simply fill out the free case review form below to get started.