File For Bankruptcy And Benefit By Credit Card Debt Elimination
Every year, people discharging debt through bankruptcy totals almost $20 billion from Chapter 7 liquidations alone. But blatant charge card abuse amongst our nation’s population — from college students, to working adults, and silver-haired retirees — is wreaking havoc on card issuers, lending institutions, mortgagors, and retailers. Distressed debtors increasingly rely on credit cards, unsecured “plastic” cash, to bail them out of long-term secured obligations, such as home mortgages and auto loans. Living on borrowed money has become the norm and charge account abuse has become an American epidemic. Even at the risk of paying higher interest rates and fees, more consumers are depending on open-ended lines of credit to meet everyday living expenses. Groceries, fast food, dry cleaning and gas are all regularly charged, but no one seems to notice the extra fees, high interest, and penalties that can quickly accumulate. When borrowers constantly withdraw large cash advances to pay for big ticket items like house and car payments and casually use credit for everyday living expenses, the end result can only be financial ruin and eventual Bankruptcy. Chapter 7 bankruptcies force debtors to surrender personal property and disposable income to court-appointed trustees to settle outstanding creditor claims. Secured claims get first priority, while unsecured claims, such as credit card debt, usually get discharged. Over the last decade, borrowers have gotten wise to bankruptcy laws, fully understanding that credit card debt elimination goes hand-in-hand with Chapter 7 and 13 consumer debt protection. Some unscrupulous borrowers literally rob creditors blind by racking up thousands of dollars of valuable goods and services, only to file for bankruptcy and benefit by unsecured credit card debt discharge.
