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Credit card debt is a billion-dollar problem in America. Large credit card debt is always a cause of concern for an individual. Thus, a lot of people file for Chapter 7 bankruptcy to remove their credit card debt quickly and with minimal repayment of debts owed.

What are the possible consequences of having credit card debt?

If you fail to pay your credit card debt on time, you could face harassing debt collection calls, bad credit, and lawsuits. For example, missed payments often motivate credit card companies to raise your interest rate. The credit company could also charge late fees for unpaid debt. Sometimes, the credit company could also turn your account to a debt collector. Thus, you should always consider ways to either pay the debt or remove this debt off your card, and filing for Chapter 7 bankruptcy is a good way out.

Why is Chapter 7 filing always a good option?

It is often a challenging task to keep on paying your credit card debt each payment cycle, and on average, it takes over ten years to clear all of an individual's credit card debts. Secondly, if you miss even a single payment or are late to it, then the credit card company raises your interest rates.

In such scenarios where the credit card debt keeps on rising, a Chapter 7 bankruptcy filing is a good option because it always removes almost all of your debts barring a few exceptions. If your debts get out of hand, then Chapter 7 can undoubtedly come to your rescue.

Credit Cards Debt that does not get removed by a Bankruptcy filing

You have to always keep in mind that there are certain transactions that a bankruptcy filing cannot erase. A bankruptcy court could find non-dischargeable transactions, including purchases of luxury items, fraudulent transactions, and payments made for alimony, student debts, and child support.

Contact a Sacramento bankruptcy attorney to find out how you can eliminate your unsecured credit card debt.