Too Much Credit Card Debt?

Do you have too much credit card debt?  If so, you are not alone.  Credit card debt recently surpassed one trillion dollars for US consumers.  That's a lot!  An ABC news story depicts the deepening American debt load.  What, then, to do?

The simple solution is to pay credit card debt off.  Budget solutions suggest paying down higher interest rate creditors first.  That's well and good.  If you can afford it.  But if you have too much  debt you may not be able to afford it.  That's why you may be in debt in the first place.

Borrowing more money to pay off too much credit card debt is another way out.  But it really isn't a way out.  It is a just digging deeper into debt.  Whether you borrow against your home or take out new loans to pay off older ones, you may be only worsening the problem.

More income is another silver bullet for too much credit card debt.  But that, too, is a limited option.  Most Americans are on a fixed income.  Static income in not just for seniors.  Anyone earning a salary knows that.  Most people earn what the earn.  Raises are not enough for those living with too much credit card debt.

Bankruptcy may be the best option for those trying to manage too much credit card debt.  Bankruptcy may eliminate your debt while allowing you to protect your assets, including your home.  It may actually improve your credit  since, after all, elimination of debt is a big benefit on your credit.

If you think you have too much debt, contact my office for a free bankruptcy consultation.  If you owe more than you can afford, are robbing Peter to pay Paul or have financially had it, bankruptcy may be the best solution.

Common bankruptcy myths are many.  But they shouldn't deter filing for bankruptcy for those in need.  Why?  Because they are not true.  Bankruptcy is a powerful financial tool for those unable to afford their debts.  Your debts can be eliminated or, at the least, reorganized.  Some of the most common misconceptions of bankruptcy are laid out in this post.

Common Bankruptcy Myth:

You Must Surrender Your AssetsNot true.  One of the most common bankruptcy myths is that you cannot protect your property.  Not so.  Bankruptcy law allows you to protect your assets.  Usually all of them.  Exemption laws provide protection of your property when you file bankruptcy and, as a result, you don't have to lose everything.  As I have counseled countless clients in Sacramento, you don't have to give up your possessions when you file bankruptcy.  Bankruptcy laws let you keep your home, cars, cash and retirement.  And the list goes on.  Every case is different, as are individual finances.  But the point is you don't have to surrender your property to gain debt relief through bankruptcy.

Common Bankruptcy Myth: Bankruptcy is Bad for Your Credit

It is.  But if your debt is worse your credit can improve by filing bankruptcy.  The key to determining whether to file for bankruptcy is weighing these factors.  It is understandable that this is one of the most common bankruptcy myths.  But your debt load must be considered in evaluating your bankruptcy options.  Is it better on your credit to file bankruptcy and remove your debt?  Or is it better to avoid bankruptcy and live with  the debt on your credit?  This is the question to ask.  A Time Magazine article points out this balance.

No matter the financial need, bankruptcy can be a good option.  Therefore, don't disregard bankruptcy.  Living in debt is hard.  Often debt begets more debt.  It is a cycle bankruptcy can break.  Bankruptcy myths should not be part of your decision whether to file for bankruptcy.

Contact my office for a free consultation to evaluate your options.  You have nothing to lose, but your debt.

Debt or Discharge?

Debt or discharge, that is the question. But what does it mean?  Simply put, its a decision.  It's a decision whether to live with debt or without it.  Discharge is the end result of a bankruptcy.  When you file bankruptcy, here in Sacramento or elsewhere, you  have debt.  Likely a lot of it.  Enough debt to prompt you to file for bankruptcy.  But, again, why?

Bankruptcy is a legal process that can eliminate your debt.  The end result of a bankruptcy filing is a discharge. Here is an explanation of it from the Sacramento bankruptcy court. A discharge is a legal order from the bankruptcy court.  It orders your debts no more.  Hence the title of this blog being debt or discharge.

Before you get the discharge, you must complete the bankruptcy filing process.  It's not too difficult to do with legal guidance.  But it must be done right.  Otherwise, no discharge.  Then your debt or discharge question is answered for you.  Some of the basic components of a bankruptcy filing are listing your creditors and assets.  You have to put down everyone you owe money.  Even if is Aunt Edna or Uncle Charlie.  Everyone must go onto the list, or schedules in bankruptcy.  Including your assets is an obvious one.  Bankruptcy law allows you to protect, or exempt, your property.  But you have to list it.  

When the bankruptcy filing process is done, the judge orders orders a discharge.  Poof, no more debt or discharge dilemma.  Maybe this is an oversimplification.  But maybe it's not.  The point is you have a choice choice.  There are several facts that lead to debt.  And there are several factors that can lead to a discharge.  Each debtor is different.  But all have options.

Contact my office for a free consultation to evaluate your options.  

Sacramento Bankruptcy Basics

Sacramento bankruptcy basics is a primer post for those considering filing for bankruptcy.  Bankruptcy can be a hard decision.  A really hard one.  But bankruptcy can bring relief.  Lots of it.  The most basic equation for those thinking of bankruptcy is debt.  More debt than income.  That is the common denominator for bankruptcy filers.  So, if you have more debt than you can afford, bankruptcy should be considered.  Not because you want to.  Since you have to.

But bankruptcy is not that bad.  What many fail to consider is the benefits of bankruptcy.  Namely, it eliminates debt.  Many in Sacramento are living with debt they cannot pay.  Something needs to be done.  But what?  The first Sacramento bankruptcy basics evaluation should be whether your debt is growing.  If it is, that's a sure sign you have more debt than you can afford.  And it's also a sign your debt is likely to get even bigger.  Borrowing to pay off borrowed money is a common phenomenon.  It is unsustainable, though.  Something will eventually have to give.

Debt consolidators are commonplace.  Their pitches are good.  But their impact is bad.  Consolidating your debt is a ding worse on your credit then bankruptcy.  Plus it doesn't eliminate your debt.  Here is a news story revealing the problems.  Sacramento bankruptcy basics should always include avoiding these companies.  This is not a scare tactic.  It is a fact.  Having third parties pay your debt, if that even happens, is worse than bankruptcy on your credit.  And if some of you debt is eliminated, it is taxed.  Debt discharged, or eliminated, in bankruptcy is not taxed.

As a final Sacramento bankruptcy basics point, I invite you to evaluate your bankruptcy options.  You can go to the Sacramento Bankruptcy Court to gather information.  Or you can contact my office for a free evaluation.  All you have to lose is your debt!