Using credit cards is a normal part of everyday life for many people. Although they help to establish a credit history and come in handy in emergency situations, it’s not uncommon for credit cards to generate an overwhelming amount of debt in a short amount of time. If you find yourself in over your head with creditors, it’s important to explore all your debt relief options, which includes declaring bankruptcy. However, this is not a decision to take lightly, so it’s essential to consult with an attorney. They will help you determine if filing is the best course of action to take.

Here are some of the factors you need to consider when deciding if bankruptcy is the proper way to handle your credit card debt:

• Are You Facing a Lawsuit? Think about whether your creditors are suing you for repayment. Aside from harassing you with phone calls and letters, creditors can demand repayment by pursuing a court-ordered judgment. This would allow them to access your bank account, garnish your wages, and place a lien on any property you own. Declaring bankruptcy will usually put an immediate stop to any lawsuit pending against you.

• How Much Do You Owe Creditors? Figure out how much credit card debt you have. To be eligible to file bankruptcy, you must pass a means test that shows you don’t make enough income to pay off your debts. Typically, you will need to owe a substantial amount or earn just enough to meet your basic needs each month. 
• What Other Financial Obligations Do You Have? Since you can’t file bankruptcy just to discharge credit card debt, you also need to factor in other financial obligations. A bankruptcy won’t eliminate secured debt, such as mortgage and car loans, student loans, taxes, and child support, which means you will still be responsible for paying those. However, it will get rid of other unsecured debt, including medical bills and personal loans.

Credit card debt is difficult for even the most financially responsible people to manage. This is why many residents in Redding, CA, turn to Mark Briden Law for help regaining their financial freedom. Since 1987, the practice has been dedicated to guiding clients through the bankruptcy process as smoothly as possible. If you think filing bankruptcy is the solution to your debt problems, contact the firm at (530) 222-1664 to ask about their payment plans and schedule a free phone or in-person consultation. Visit them online for more information.