Credit Card Debt and Bankruptcy
- January 2, 2014
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As the holiday season comes to a close, many people may already be starting to worry about their growing credit card debt issues. Statistics indicate that millions of people are still trying to pay the credit card debt that was incurred during the previous holiday season a year after making their purchases. The high interest rates that are attached to credit card purchases combined with excessive holiday gift buying could result in a financial disaster that many people simply cannot find an easy way out of. To avoid finding themselves in the aforementioned financial crisis, consumers should strive to make credit card payments that are higher than the minimum monthly payments. For some, their debt is so high that they even have difficulty paying the monthly minimum payment amounts. If an individual becomes overwhelmed by their credit debt bankruptcy may be an option to help them find a way out of their consumer debt crisis. Upon filing for bankruptcy, the debtor will receive the benefit of the automatic stay, which prohibits creditors from harassing the debtor to make payments on their debt. Some debtors may even receive a complete discharge of their credit card debt through the bankruptcy process. It is important to find out whether your holiday shopping debt is dischargeable in bankruptcy before filing your petition. During the bankruptcy proceedings, if the bankruptcy court concludes that a debtor purposely incurred the debt with the intention of filing for bankruptcy in the new year, the debtor will remain liable for all of the debt that assumed. If you are having trouble dealing with your credit card debt or other consumer debts and are considering filing for bankruptcy, it is critical that you seek the advice of experienced legal counsel to advise you on the options you have in resolving such matters. For more information about credit card debt, bankruptcy, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.