Debt accumulated on credit cards is one of the most common reasons for Americans to file for bankruptcy. Now, according to a recent report, accumulated credit card debt in America has risen to a level that almost meets one of the highest points in years.
The recent report notes that credit card debt in America was at about $978 billion at the end of 2016. A high mark from a decade ago, in 2007, was almost $982 billion. The report indicates that in 2017 credit card debt is expected to reach – and exceed – $1 trillion.
While it may be that many consumers have more faith in the national economy these days and, as a byproduct, more faith in their ability to repay debt, the reality is that many people will eventually find themselves in such a hole of debt that they won’t be able to dig out. When this occurs, filing for bankruptcy can help.
Bankruptcy – particularly Chapter 7 bankruptcy – is a tool for consumers to use to get out from under their heavy debt obligations and get a fresh financial start. In Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, consumers will list all of their assets and those that aren’t exempt are then sold, with the proceeds being applied toward debt. Any remaining debt is then usually discharged. From there, the consumer is freed from the financial challenges that debt can bring.
With credit card debt on the rise again, bankruptcy filings in New York may be on the rise as well. Thus, it is important to think about what options are available to consumers dealing with financial problems. Bankruptcy could be a reliable solution, and debtors need to timely take informed action.
Source: cbsnews.com, “U.S. credit card debt at highest level in a decade,” Jonathan Berr, March 9, 2017
