Can Filing for Bankruptcy Resolve Credit Card Debt?

 Posted on February 03, 2023 in Credit Card Debt

Credit cards serve as an important financial resource for many Americans. They allow consumers to pay debts and make purchases in an instant. When they are used as strategic tools or true stop-gaps, they can come in handy during emergencies and as very temporary sources of funding. Yet, all too often, credit card balances become financial burdens. When a balance is not consistently paid off and paid off on time, possessing a credit card can become an expensive source of debt and anxiety.

Thankfully, there are a number of ways in which consumers can resolve burdensome credit card debt. Depending on an individual’s unique circumstances, resolving credit card debt may be best approached through filing for bankruptcy or via a bankruptcy alternative.

Filing for Bankruptcy 

Credit card debt is generally best resolved via a bankruptcy filing under two circumstances. First, individuals who do not earn much money may not be in a position to repay their creditors – even a little – for some time. Filing for Chapter 7 bankruptcy can eliminate credit card debt without any repayment obligations. This can help filers to achieve a fresh start.

Second, bankruptcy is often the best option when consumers are struggling with more than one kind of debt. For example, if an individual is struggling to repay credit card debt and significant medical debt, filing for bankruptcy can help to resolve both issues at once.

Bankruptcy Alternatives

If a consumer is in a position to make modest repayments on time each month and they are only struggling with credit card debt, a bankruptcy alternative may better suit their needs. They can explore a credit card balance transfer, debt settlement, negotiating directly with a credit card company, or a debt management plan.

Contact a Compassionate San Antonio Bankruptcy and Bankruptcy Alternatives Lawyer to Learn More

If you are struggling to repay multiple credit card balances on time, there are options available that can help you to get back on track. Scheduling a free, no-risk, confidential legal consultation with the reputable San Antonio, TX bankruptcy lawyers at Law Offices of Chance M. McGhee will allow you to receive personalized guidance concerning the option or options that will most effectively help you to reach your debt-related goals.

You can schedule your free case evaluation today by submitting a contact form on our website or by calling us at 210-342-3400. Do not let another sleepless night go by before you seek manageable solutions to your debt challenges. We look forward to speaking with you.

Source: 

https://www.cnbc.com/select/us-credit-card-debt-hits-all-time-high/