Credit card debt has become a serious problem for many Louisiana residents. While some people are able to deal with it through stricter budgets, others must tackle their financial obligations in other ways. Chapter 7 bankruptcy could be a solution for some individuals who are facing overwhelming financial problems.
A recent study performed by a personal finance website estimated that the average American family owes about $8,377. It also reports that, overall, Americans owe more than $1 trillion in credit card debt. This indicates that the average credit card debt per household has risen six percent within the past year.
For those who cannot overcome their debt through simply paying more than the minimum payment each month or through changing their budgeting technique, there are other alternatives at one’s disposal. One of those options is filing for Chapter 7 bankruptcy. Under this form, assets are liquidated, and a person’s debt is wiped out. An automatic stay is also put into place that blocks collectors from requesting further payment. Though the bankruptcy may remain on a credit report for several years, credit scores often go up within a few months of filing.
Any Louisiana resident interested in learning more about the advantages of Chapter 7 could speak to an experienced bankruptcy attorney. In addition to providing more information about the process and what one should expect, an attorney could assess a client’s financial situation to determine the best course of action. Knowing all the options available for debt relief could be the first steps for many to regain financial stability.
Source: cnbc.com, “Here’s how much the average US family has in credit card debt“, Kathleen Elkins, Accessed on June 10, 2017