Can Bankruptcy Get Me Out of Credit Card Debt?

scrabble cc debt

Annie had always been diligent about staying current on her mortgage payment and utility bills – it was important to her to be able to remain in her home and she was proud of paying her bills.

About 18 months ago, Annie incurred a demotion at her place of work, and started bringing in only about half of her former paycheck. Over that period of time, she prioritized her monthly payments and continued to stay current on her home loan and utility bills.

However, the cost of those bills quickly ate away at her new (much smaller) paycheck, and Annie found herself charging many of her living expenses to one of several credit cards. All the while, as she continued to use her credit cards for things like groceries, toiletries, gifts and miscellaneous expenses, she had only planned for this situation to be TEMPORARY.

Ever since her change in job status, Annie had been tirelessly applying for positions that would see her making the money she needed to finally pay down her credit card balances and start using real money for her expenses once again. Unfortunately, due to a challenging job market and her lack of a college degree, she was passed over for all of the higher paying jobs she applied for, and her credit card use continued.

She had been unable to pay her monthly credit card minimums for awhile, and tried to put the rising balances out of her mind until she reached a place in her life where she could adequately deal with them. Still stuck in the same lower paying job a year and a half later, she finally decided it was time to sit down and add up all of her credit card debt so she at least knew what she was dealing with. Imagine her surprise when the total amount was a staggering $25,000+. What she wanted to know now, was:

How can I get rid of this debt and still manage to live my life?

Many people don’t fully understand bankruptcy. It is still taboo in many areas of the country and among certain groups of people. In fact, some people like Annie don’t even realize that credit card debt can be erased by filing for Chapter 7 bankruptcy. Not just lowered, but ERASED! (It is possible to repay your credit card debt on a modified schedule with a Chapter 13 bankruptcy – but this requires that your income will allow you to do so.)

If you’ve found yourself in a credit card situation that you never thought you’d be in, do not be ashamed. It happens to A LOT of people! You did what you had to do to make it through a tough situation. Perhaps you made some less-than-optimal money decisions. The important thing is that you now recognize that there is a problem and that you are taking steps to rectify it. Contacting an attorney should be the next thing on your To-Do list, so that s/he can discuss your case specifics with you, and create a plan of attack that will see you with the brightest financial future possible.


Image credit: GotCredit via Flickr

6 Responses to Can Bankruptcy Get Me Out of Credit Card Debt?

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