As the holiday season winds down, many Americans will find themselves with buyer’s remorse. You know that feeling you get when you spent more than you can afford and now it’s time to pay the piper. This year might be a little different for many folks because they just don’t have enough money to make their household expenses and pay their credit cards. The average American has over $16,000 in credit card debt and makes about $38,000 a year. After taxes and household expenses, there’s not much left over to pay the credit card debt.
Every year, many people try to get their debt under control as a New Year’s resolution. Some go as far as taking on the goal of becoming debt free, while others just want to break even. In fact, after New Year’s is the perfect time to go visit a bankruptcy attorney and discuss one’s financial shortfalls. Starting back in November, many people decide that they just want to have one more good Christmas and then they will budget themselves and get it under control. The only problem with this idea is most Americans don’t make the same amount of money as they did in the past and many are suffering being unemployed. So this leads me to my next point, If you for a New Year’s resolution. Filing Chapter 7 bankruptcy might be your only hope of ever getting out from under crushing credit card debt. One way to see if you should file for bankruptcy is add up all your credit card bills and figure out how many years it would take to pay them off if they stop charging entirely on the accounts. If it takes more than five years, it’s time to go see a bankruptcy attorney and see if you qualify to file Chapter 7 bankruptcy. Many times, the interest alone on credit card debt will be debilitating. Filing bankruptcy will stop everything instantly. Once a bankruptcy is filed, the automatic stay will stop all collection activity from the creditors. Depending on the individual’s personal situation and how bad it is, the automatic stay will stop creditors from foreclosure, wage garnishment, lawsuits, judgments and the best one of all, no more harassing phone calls. If a creditor wants to call, you redirect them to your bankruptcy attorney to deal with them. In the end, after filing bankruptcy the debtor will find relief by getting a discharge from all unsecured debt and in some cases being virtually debt-free.