Credit cards can be useful for the average Ohio consumer, but when the balance becomes unmanageable, this can eventually snowball into a serious financial problem. Credit card debt is one of the most common types of debt because many people use their cards when cash flow is limited, or they depend on credit in the event of an emergency.
If you find yourself overwhelmed by debt, accumulating interest and other financial troubles, you may feel hopeless and overwhelmed. Fortunately, you have options. Consumer bankruptcy offers a way out of your unfortunate situation, providing you a way to effectively confront debt and obtain a fresh financial start.
The benefits of bankruptcy and dischargeable debts
Credit card debt is dischargeable, which means that it is eligible for pay-off, significant reduction or elimination during the bankruptcy process. The most common types of credit card and credit account debt that may necessitate a bankruptcy filing include:
- Store credit cards
- Credit accounts from purchasing supplies
- Cash advances
- Loans
Chapter 7 bankruptcy will eliminate these types of debt. Under Chapter 13 bankruptcy, these debts are organized and grouped together with other types of debt, such as medical debt, and you make monthly payments as part of the debt reorganization plan. Under Chapter 13, you can pay off debt for only pennies on the dollar, and there will be no penalties or interest against you.
Determining which chapter of bankruptcy is right for you is based on of a number of factors, such as your income, your assets and the other types of debt you may have in addition to credit card debt. An experienced attorney can evaluate your situation, identify legal options and explain how filing for bankruptcy can halt creditor harassment and other unpleasant consequences of credit card debt.
Seeking the fresh financial start you need
If you are hounded by creditors, receiving threatening phone calls and do not know how you will ever escape your burden of overwhelming debt, you are not alone. Many people struggle with consumer debt, but, sadly, most do not understand how bankruptcy can provide many immediate and long-term benefits, such as the automatic stay and a fresh financial start once the process is complete.
You have the right to know your options and to take the appropriate steps for a better financial future after struggling with significant credit card debt.