Filing Chapter 7 Bankruptcy
Learn How Filing Bankruptcy Can Put an End to Credit Card Debt
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Do you constantly find yourself falling further and further behind on your past-due credit card balances despite your best efforts to limit your spending?
Have you fallen in the trap of transferring large balances onto other credit cards, burying you and your family deeper in credit card debt?
Do you avoid picking up the phone for fear of being harassed by angry creditors looking to collect on your late credit cards?
If these scenarios sound all too familiar, take solace in the fact that you're not alone.
Many Americans have increased their borrowing in order to make ends meet during these tough economic times.
Debt Continues to Burden American Families
Recent statistics from the Federal Reserve show that consumer debt has decreased throughout 2009, but continues to create a burden for American families living beyond their means:
- Consumer credit peaked at $2.58 trillion in summer of 2008.
- While consumer credit has been declining since then, it's still projected to be over $2.5 trillion.
- From February through March 2008, consumer credit rose by $15.3 billion, more than two times the $6 billion increase that experts had predicted for that period.
- Through the first quarter of 2008, Americans had borrowed roughly $34 billion, marking the most amount of money borrowed since the first three months of 2001, the last time in which the economy was officially in a "recession."
- According to the six principal credit card lenders in the U.S, 4.11% of credit card payments were 30 days late in March 2008, representing the highest amount of overdue payments since November 2004.
While these statistics paint a bleak picture, know that you have options when dealing with your credit card debt.
It may come as a surprise to you that filing bankruptcy under Chapter 7 of the U.S. Bankruptcy Code has helped many people discharge credit card debts and get a fresh financial start.
Chapter 7 Bankruptcy Addresses Credit Card Debts
Chapter 7 bankruptcy works to help people get an absolute discharge from credit card debt and many other unsecured debts (debts that are not backed by a real item or piece of property).
So how does Chapter 7 bankruptcy accomplish this? When most Chapter 7 bankruptcy cases are filed, an automatic stay takes effect, preventing creditors from taking any action on overdue credit card debts.
The Refreshing Aspect of Chapter 7 Bankruptcy
You may have heard Chapter 7 bankruptcy referred to as "liquidation", because a bankruptcy trustee has the option of liquidating or selling non-exempt assets to make partial payment to creditors. You'll be happy to know that most Chapter 7 petitioners do not have any non-exempt assets, and there is usually no sale of property during Chapter 7 cases.
That means many people are able to wipe clean credit card debt without having to sell anything.
Learn More about Filing Chapter 7 Bankruptcy with a Bankruptcy Lawyer
By simply visiting Clear Bankruptcy, you've already taken steps to liberate yourself from your credit card debt and shown that you want to enact a positive and liberating change in your life.
Now keep moving forward by getting in touch with a local bankruptcy lawyer who can explain Chapter 7 bankruptcy in more detail and how it may apply to your current circumstances.
Connect with bankruptcy lawyer today. Simply fill out our free bankruptcy evaluation form or call toll-free 877-833-2410 to speak with a local bankruptcy lawyer near you.