If you feel like credit card debt has taken over your life, statistics show that you’re not alone. Recent numbers from the Nilsson Report reveal that the average American household carries over $8,000 in credit card debt. With the national unemployment rate hovering at 9.5%, it’s no wonder that Americans are turning to credit cards to meet their everyday needs.
If you’re struggling under the burden of debilitating credit card debt, and can’t seem to make real progress with any of your creditors, your best option may be to declare bankruptcy. Filing for bankruptcy doesn’t mean you’ve given up—for many, it’s the only way to get back on the path to financial independence.
In October 2005, the laws which govern Chapter 13 bankruptcy changed. One of the more significant ways the law changed dealt with the eligibility requirements for filing for Chapter 7 and Chapter 13 bankruptcy.
Vehicle repossessions are unfortunately quite common as many people are still struggling to gain a foothold in the unsure economy. Falling behind on vehicle payments can occur for a variety of reasons, with medical hardship and job loss as two of the biggest contributing factors.
The decision to file for bankruptcy is not one to take lightly. With the multiple bankruptcy plans available and the changes to bankruptcy law that occurred in 2005, it is important to be an informed about options from various scenarios. If you are considering filing for bankruptcy but have concerns about what may happen should your income change, here is an overview of the facts.