Credit card debt is a serious problem for many Americans, and Floridians are no exception. The issue of how to deal with credit card debt can be complex and distressing for Florida families who are struggling financially. One option to tackle unmanageable credit card debt is to file for bankruptcy. However, it is vital to understand how the different types of bankruptcy can affect any credit card debt.
Chapter 7 bankruptcy is the most popular type of bankruptcy filed for families and individuals. As it pertains to credit card debt, this form of bankruptcy can result in a discharge of that debt. Some credit card companies may try to tell debtors that bankruptcy will no longer result in a discharge of debt; however, that information is false. The discharge of the debt simply means you will not have to pay back the credit card companies.
Chapter 13 is another option that may be beneficial for those struggling with credit card debt. This form may mean you are required to pay back a certain percentage of that debt as part of the bankruptcy filing. This form of debt repayment can help struggling families obtain a payment plan that is manageable.
Bankruptcy is wrought with misinformation and even scare tactics that leave many people wondering what is myth and what is fact. The exact type of bankruptcy that may work best for a family all depends on the nature of the debt, the amount of the debt and the family’s outlook for future financial independence. Credit card debt can be huge part of why a family pursues bankruptcy in Florida, and how that bankruptcy filing directly affects that debt depends on the individual situation.