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The holidays may be behind us, but if high interest credit card debt is weighing on you, you are not alone. Many Americans are experiencing significant financial concerns stemming from the past several years, and many have had to access lines of credit and credit cards to meet monthly obligations. When you add the additional holiday spending into the mix, you may find yourself unable to make your monthly payments, resulting in further charges and penalties. It becomes an endless loop, and the high interest credit card debt can leave your finances paralyzed.

Can Filing Bankruptcy Help?

In certain circumstances and if filed properly, bankruptcy can eliminate most unsecured debt – the type of debt that is not attached to an asset. If your debt did not require collateral – an asset – to acquire, it is likely unsecured, but only an experienced attorney can determine what can be resolved through a bankruptcy filing. Typically, unsecured debt includes medical bills, utility bills and credit card debt.

Student loans are not eliminated through bankruptcy, except in certain circumstances.

By filing for bankruptcy, your legal representative will help protect you from your unsecured creditors and stop the endless calls and letters from debt collectors. Filing for bankruptcy may also prevent creditors from garnishing your wages, repossessing your car or foreclosing on your home.

Is Bankruptcy Right for You?

There are two types of personal bankruptcy filings you can discuss with your attorney. Chapter 7 bankruptcy eliminates your high interest credit card debt, medical bills and other types of unsecured debt. Chapter 7 requires you to satisfy a means test, but if you do not qualify, there is another option called Chapter 13.

Chapter 13 bankruptcy requires you to pay back a portion of your unsecured debts, but they are reorganized into affordable payments without the punishing rates of high interest credit cards.

The decision to declare bankruptcy should not be taken lightly. George R. Belche can help you explore the options that may free you from unsecured debt and allow you to begin rebuilding your finances. Contact his office today for a free initial consultation.

George R. Belche, Attorney at Law

189 West Pike Street, Suite 103

Lawrenceville, GA 30046