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Handling credit debt in the face of Chapter 7 bankruptcy

Credit card debt is the most pervasive and common form of debt faced by the American people in this day and age. Here in Kentucky, individuals and households rack up tens of thousands of dollars in debt per year, leading many to seek out the best possible solution to the problem. While Chapter 7 bankruptcy filings have a proved track record of helping people get back on financial track, there are other options available in advance of such a filing. 

The first step, of course, is to acknowledge that a debt problem exists at all. Many people choose to ignore bills (and even bill collectors) until the problem has become nearly insurmountable. Taking stock of existing debt and developing a comprehensive plan to handle it is a good first step. In some cases, high-APR credit cards can have their balances transferred to cards with a lower interest rate.

This is good for several reasons. First, the household is no longer paying into interest payments at a high monthly or yearly rate. Second, many balance transfer cards offer lower interest rates and even an interest-free grace period that can be used to get a head-start on paying down debt. Many cards do not require that a balance transfer fee be paid either. 

But for some people, merely rearranging their credit debt is not enough. For those people, Chapter 7 bankruptcy might be a viable option. With the help of a Kentucky attorney, filing for bankruptcy can erase existing credit debt and allow the household to get back on its collective financial feet. 

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