Chapter 7 bankruptcy: Credit issues often connected
Many Tennessee residents understand what it is like to experience ups and downs regarding their finances. It is not uncommon for people to have several years in a row where they feel financially comfortable and things are going well, then hit a stumbling block when expected issues arise that put a strain on their finances. A common cause of financial crisis is credit card debt, and a viable solution to such crisis is often Chapter 7 bankruptcy.
Every person’s financial circumstances are unique; yet, there are numerous issues regarding credit card debt that are common across the board. For instance, credit cards enable a person to spend more money that he or she has, which can quickly lead to substantial debt. Also, if unexpected medical emergencies arise, many people are not prepared to meet the expenses associated with the situation and wind up using their credit cards to pay medical bills.
Another issue that often leads to high credit card debt is that cardholders get into the habit of making minimum payments only. This is often barely enough to cover interest charges. Many credit card companies offer perks and rewards for using their cards, which also tempts people to overspend. They are excited to get cash back but do not realize they are, in fact, racking up a higher unpaid balance in the process.
Chapter 7 bankruptcy is a viable solution for many Tennessee residents whose credit card debt has gotten out of hand. As with all bankruptcy options, a person must satisfy eligibility requirements before filing an application. An attorney who is well-versed in debt relief issues and bankruptcy laws can provide support to anyone wishing to learn more about how to file for Chapter 7 or Chapter 13 bankruptcy as a means of eliminating credit card debt.