Do you have credit card debt? Are you unable to make minimum payments?

Most individuals carry at least one credit card, even if they only use it for emergency expenses. While they may not intend to ever carry a balance, things can happen that may result in the accumulation of debt. If they lose their job or suffer a medical emergency, they may deplete their savings account and still not have enough money on hand to repay these obligations.

Because of a change in circumstances, the high interest rates associated with credit cards could result in those with unpaid balances finding they are having serious difficulties making even the minimum payments. This credit card debt can create significant financial hardship, and leave individuals unsure of what they should do in order to get out of debt.

Some may try to work with debt relief companies to consolidate their debt while paying back outstanding balances. However, these companies often leave the person in a much worse financial position. The money that would be used to pay minimum payments to the credit card companies instead often goes to the debt relief company for fees and the creditors can go months without being paid. This may lead to law suits and judgments and even worse, wage garnishments against the cardholders. This can only increase the problems that these individuals may be experiencing as their financial woes become public, including to their employer

Others may try to contact the credit card issuers to try to settle or reduce the outstanding balance. While some companies may be willing to make such an arrangement, there is no guarantee that they will work with cardholders to provide a payment solution over time. They are typically experienced negotiators who use methods which are designed to maximize their recovery in these situations, while cardholders may not know what to do in order to reach an agreement which is affordable.

Filing for bankruptcy protection may provide individuals with an immediate solution by which to address their financial problems. Certain debts, such as unsecured credit card debt, could be eliminated by filing and obtaining a discharge through bankruptcy. In addition, there is typically an automatic stay that goes into effect when a bankruptcy is filed. In most instances, the bankruptcy filing brings an immediate stop to all collections actions that are pending against these individuals. This can be a major benefit for those who have been unable to regain control of their finances and feel like the situation is spiraling out of control.

If you are having difficulty making your credit card payments, or struggling with other debt issues, you should reach out to an experienced bankruptcy attorney as soon as possible. Because of the often time-sensitive nature of these matters, you should take action immediately in order to preserve all of the options that may be available to you.

Once you speak with your attorney, you will have a clear idea of the steps you need to take to protect your financial future. You can create a plan that meets your needs, and helps you to resolve your credit card debt.

You may have several questions about bankruptcy, and your attorney will be able to explain the filing process to you so that you understand what will happen in your specific situation. This can help you be sure that you have made the right choices for your future and a fresh start.