Can You Discharge Credit Card Debt With Bankruptcy?
As the economy worsens, people fall behind in their bills, interest rates climb and so do default rates.
Some people may choose to ignore their unpaid credit card debt, and others attempt to resolve it.
Many people, however, begin to consider bankruptcy as a way to avoid responsibility.
Is Bankruptcy a Bad Idea? For some people, bankruptcy may work as a suitable form of debt relief.
It can effectively free you of any obligations to repay certain creditors, and it can bring an end to years of stress, worry and creditor harassment.
It can also be used as a last resort to avoid lawsuits, court judgments, garnishments or liens.
The problem is, bankruptcy is probably one of the worst things to have on your credit-it can lower your score by hundreds of points and will remain for no less than 10 years.
Are there any Alternatives to Bankruptcy? If you're not convinced that bankruptcy is the best solution to your debt problems, you can seek other forms of relief.
Some people are able to negotiate their credit card debt down to an amount they can afford, and others may choose to consolidate and/or pay off the debt in monthly installments.
Or, if there are any mistakes concerning your credit history or debt, you can dispute it and ask the reporting agency to correct or remove the error from your credit file.
Regardless of how you decide to handle your debt, the important thing to remember is that ignoring it will most certainly make the problem worse.
Defaulted debts can result in:
But before you decide to file for bankruptcy in order to free yourself from credit card debt, consider whether or not there's a better way to handle the problem.
It's quite possible that there's a solution that can help you avoid the pitfalls of bankruptcy and bad credit.
Some people may choose to ignore their unpaid credit card debt, and others attempt to resolve it.
Many people, however, begin to consider bankruptcy as a way to avoid responsibility.
Is Bankruptcy a Bad Idea? For some people, bankruptcy may work as a suitable form of debt relief.
It can effectively free you of any obligations to repay certain creditors, and it can bring an end to years of stress, worry and creditor harassment.
It can also be used as a last resort to avoid lawsuits, court judgments, garnishments or liens.
The problem is, bankruptcy is probably one of the worst things to have on your credit-it can lower your score by hundreds of points and will remain for no less than 10 years.
Are there any Alternatives to Bankruptcy? If you're not convinced that bankruptcy is the best solution to your debt problems, you can seek other forms of relief.
Some people are able to negotiate their credit card debt down to an amount they can afford, and others may choose to consolidate and/or pay off the debt in monthly installments.
Or, if there are any mistakes concerning your credit history or debt, you can dispute it and ask the reporting agency to correct or remove the error from your credit file.
Regardless of how you decide to handle your debt, the important thing to remember is that ignoring it will most certainly make the problem worse.
Defaulted debts can result in:
- A low credit score, making it hard to get approved for new loans and credit
- Unnecessary harassment from creditors and collection agencies
- Undue financial hardship as a result of unreasonable payment plans and interest fees
- A lawsuit or court judgment on behalf of your creditors and or debt collectors
- A garnishment of your wages or liens even on your property
But before you decide to file for bankruptcy in order to free yourself from credit card debt, consider whether or not there's a better way to handle the problem.
It's quite possible that there's a solution that can help you avoid the pitfalls of bankruptcy and bad credit.
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