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Chapter 7 can bring independence from overwhelming debt

With Independence Day 2014 now in the rear-view mirror, many Wayne County residents will find themselves reflecting on the possibility of their own independence -- from credit card debt, that is. The good news for these folks is that there are a number of options on the table. These range from some common-sense best practices in their day-to-day budgeting for smaller debts to more comprehensive solutions for overwhelming debt.

The first thing one must do in order to begin to chip away at credit card debt is to stop adding to it -- i.e., stop using credit cards altogether. Then, look at where in the budget cuts can be made to free up the money necessary to start paying down the debt. Deep cuts may be required, especially if one intends to make more than just the minimum monthly payments (usually a must in order to really start putting a dent in the debt).

If this sounds painful, Wayne County residents aren't alone in struggling with debt. As of April 2014, the average American household is burdened by over $15,000 in credit card debt. That's just the average, meaning many have substantially more than that. When faced with these kinds of amounts of personal debt, some may not feel that the old-fashioned strategies are relevant to them.

Chapter 7 bankruptcy is another option available for individuals and families in search of far-reaching debt relief and a fresh financial start. Chapter 7 does entail asset liquidation, meaning a home with mortgage or a car with a loan will likely be subject to recapture by creditors. But some property will be exempt from liquidation, like a certain amount of home equity, a car below a certain value and even retirement benefits. And Chapter 7 completely and permanently discharges all unsecured debt. That means, among other things, credit card debt.

A legal professional can help answer questions for individuals considering filing for Chapter 7. It may not be the right option for every situation, but many will find it worth looking into.

Source: U.S. News, "5 Tips to Liberate Yourself From Credit Card Debt," Lindsay Konsko, June 30, 2014

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    Posted by MaryDecember 11, 2015

    "I am overwhelmed by your response to my call, even 10 years after my bankruptcy was discharged. You have more knowledge and expertise than I could have imagined. Because of you, my fears have been put to rest. For that, I'm so very grateful. Thank you many times over. "

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    Posted by ClientOctober 26, 2010

    "... I was extremely impressed with Charles' understanding of the bankruptcy laws to the extent that I felt certain that my best interests were always at the forefront. "

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    Posted by MarleneJanuary 8, 2014

    He helped me thru my 1st bankruptcy and now the second. I had no idea what to expect , but they kept me informed and answered all my questions. Mr. Schneider is the most experienced and knowledgeable lawyer I have ever met. If you have to file call this attorney first!

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