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Bankruptcy may be ticket for controlling credit card debt

On Behalf of | Oct 20, 2015 | Credit Card Debt, Firm News

Credit card debt is a problem for many families in this country for a wide variety of reasons. Once Florida families realize their credit card debt is beyond control, they may need to seek outside help to address that debt. One way to regain financial control and deal with overwhelming credit card debt is to file for bankruptcy protection.

The type of bankruptcy a family files is the main factor in how credit card debt will be handled. Chapter 7 bankruptcy is the most common. This type allows for the discharge of credit card debt. This will mean the debt is wiped out once the bankruptcy is approved.

Another route to take to deal with credit card debt may be a Chapter 13 bankruptcy. This type of bankruptcy involves a court-approved repayment plan. A percentage of the debt will be repaid over an extended period of time, and all unsecured debt will be consolidated. A monthly payment will be made to the designated bankruptcy trustee to repay what is owed.

Credit card debt can be stressful and create a whole host of other financial problems for Florida families, such as affecting the ability to stay current on a mortgage or pay down other debts. When the point has been reached where handling credit card debt on your own is only creating a bigger problem and there is no foreseeable solution, bankruptcy may be the best resolution. Our firm’s website has more information about the different types of bankruptcy and how each can help resolve credit card debt problems.

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