Everyone has at least one credit card these days, if not a few. That means that most of us have credit card debt. While some amount of credit card debt is probably healthy, it can become overwhelming to the point that you have no choice but to take drastic measures in order to get free of it. Although there are a number of ways you can work credit card debt down, if you have a lot of it, a chapter 13 bankruptcy may become the only real solution you have.
Chapter 13 Bankruptcies
From time to time, some people have used chapter 7 bankruptcies to erase their credit card debt, but this is far from ideal. Normally, experts recommend a chapter 13 bankruptcy if something like credit card debt is the major concern.
With a chapter 13, you’ll file schedules with the court that include all the relevant financial information about your life. This will outline your credit card debt, but it will also list things like other debts you have, your income, expenses, property you own and more. You’ll also have to submit a plan which will show how you will go about paying off the secured debt you’re currently struggling with. Your secured creditors and the court will have to approve of this plan before your bankruptcy is approved. Usually, these plans take between three and five years to pay off.