While many of these people are able to make the monthly payments on their credit card debt, when factors like the loss of a job, unexpected medical expenses or divorce arise, this debt can quickly snowball, leaving people struggling to reign it in while trying to cover their living expenses.
Despite how financially and emotional stressful credit card debt can be, the good news is that people have options for resolving this debt and can achieve a financial fresh start through bankruptcy.
Discharging Credit Card Debt through Bankruptcy
Credit card debt is considered to be “unsecured debt.” This means that people do not have to put up any collateral in order to take out a credit card and that credit card companies don’t have collateral to cash in when people fail to pay on their credit debt. Instead, these companies can attempt to sue borrowers and get their wages garnished.