Debt: it seems to be something that most people in Kentucky and elsewhere just cannot escape these days. While some can find ways to pay it off in a relatively swift manner, others may struggle with it for years. This is particularly true with credit card debt. For those who are really in a monetary tight spot, bankruptcy may be the answer.
Credit Card Debt Crisis in America
How bad is the credit card debt crisis? A quarter of Americans are said to have unpaid balances right now. Approximately 43 percent of these individuals have carried these balances for two years or more.
With interest rates that average between 16 and 24 percent, carrying balances for any period of time can quickly add to the amount one is required to pay back. It may seem like an impossible task after a while when all one can afford is the minimum monthly payment.
How Bankruptcy Can Help with Credit Card Debt
For Kentucky residents whose credit card debt is just too much to handle, bankruptcy may be an option.
Here are some of the ways that bankruptcy can help get rid of credit card debt:
- Chapter 7 bankruptcy can wipe out nearly all credit card debt. Once this debt is discharged in bankruptcy, you will not need to repay anything.
- Chapter 13 bankruptcy allows you to repay your credit card debts through an affordable monthly repayment plan lasting 3 to 5 years. Debtors will typically only pay a portion of that debt and have the rest discharged.
An experienced attorney can review your situation and help you navigate the details of bankruptcy, including the requirements, what you can expect, what debts can be discharged, and more.
Contact Us for a Bankruptcy Consultation
If you are having difficulty paying off your debts and are barely making ends meet, contact a bankruptcy attorney at our law firm for guidance. We can review your situation to see whether bankruptcy can help put your debts behind you.
Request a consultation today to learn more.
Source: The Seattle Times, “Carrying credit-card debt? You’re not the only one“, Patricia Sabitini, Oct. 14, 2017