Many people rely on credit cards and other lines of credit to cover regular life expenses. When the bills from these credit accounts become overwhelming, there comes a point when you might realize that you need to do something. One answer to this is filing bankruptcy.
When you get into a serious financial jam, it can be difficult to extricate yourself from a mountain of crushing debt. But before you resign yourself to a life of living paycheck to paycheck and dodging creditors, rethink your relationship with money and credit.
Last week, the Senate repealed a rule put in place by the Obama administration that gave consumers additional protection from rapacious credit card issuers and banks. The tie-breaking vote was cast by Vice President Mike Pence. The vote rolled back the rule that consumers could take their grievances to civil court and not be limited to resolving their conflicts in arbitration instead of class-action lawsuits.
Everyone has done it at some point or another — made only the minimum payment on an open credit card account. Some pay only the minimum every month, and feel grateful they can afford even that.
Perhaps you've seen the writing on the wall for some time — the dismal quarterly profit reports, the slowly-shrinking workforce — or maybe it came like a bolt from the blue. But either way, the day that you read your own name atop the pink layoff slip will be a shock regardless.
There are many paths to consumer bankruptcy -- living beyond one's means, out-of-control spending patterns and fiscal mismanagement -- that are rooted in poor saving and spending habits. As such, with time and effort, couples and individuals can eventually get their finances back on track.
Nobody wants to file for bankruptcy, but if you find yourself in this position it's good to know the many benefits that can improve your finances and help you feel better about the future.
As you learn more about Chapter 7 bankruptcy, it won't be long before you turn your attention to the types of debt that you can discharge.
If you find yourself facing a large amount of credit card debt, it's only natural to consider all your options for digging out of this financial trouble.