There are many reasons an individual or family may consider filing for bankruptcy. Credit card debt is one of the most common reasons Florida residents turn to bankruptcy as a means of regaining control over their financial futures. When that credit card debt becomes unmanageable, it is vital to understand the different types of bankruptcy and how each type may be beneficial depending on the details of the situation.
For those looking to completely wipe out credit card debt altogether, Chapter 7 bankruptcy may be the best option. Under this type of bankruptcy, credit card debt and other debts can be discharged. This means you will not have to pay back any of the debt if you qualify for this type of bankruptcy.
The other option that may benefit those drowning in credit card debt is Chapter 13 bankruptcy. This type is actually a repayment plan. Unsecured debt will be consolidated and a monthly payment plan will be put in place. In the end, you may only be paying back a percentage of that credit card debt.
If you are planning to pursue bankruptcy as a way to discharge or pay back credit card debt, there are rules as to how a credit card can be used before you file in Florida. Not knowing the rules can disqualify you before you even get the chance to learn more about how to deal with credit card debt through filing bankruptcy. Our website has more information about how you can utilize bankruptcy as a means of getting control over finances, particularly credit card debt.