There is no doubt about it; credit card debt is growing. In fact, some projections show that total credit card debt in the U.S. will hit the $1 trillion mark for the first time by the end of the year.
However, regardless of the reason why you racked up your credit card debt – including job loss or an unexpected medical emergency – there may be a simple answer to your debt problems: bankruptcy.
How can bankruptcy help?
If you decide to file a personal bankruptcy, you can discharge and eliminate many of your unsecured debts, including credit card debt.
Unlike secured debt such as mortgages and car loans, unsecured debt is any debt not backed up by collateral – meaning creditors are out of luck should you ultimately file for bankruptcy protection.
While bankruptcy may sound scary, the alternative can be horrifying. For instance, if you are unable to make your credit card payments and don’t file for bankruptcy, your creditors may file a collection lawsuit against you. And, if they obtain a judgment, which is likely, they can attempt to garnish your bank accounts or even place a lien against your property.
However, if you do decide to seek the protection of bankruptcy, you need to be careful and not accumulate a lot of additional credit card debt in the months leading up to your filing. If you do, the bankruptcy court may think you are trying to commit fraud, and it may not actually discharge your debt.
To learn more, including the other benefits that bankruptcy can provide, you should contact an experienced bankruptcy attorney right away. A knowledgeable lawyer can explain your legal options and help you obtain the fresh financial start you deserve.