Having a credit line available is a great tool, but it can also create a financial burden if you aren’t careful with your credit card usage.
Research shows that overall, Americans owe $807 billion across almost 506 million card accounts.
The amount will be much higher if we consider it globally. The question is: why do most people have so much credit card debt? Let us discuss things in detail.
High Credit Card Debt In Las Vegas:
There are various reasons why you might see people having outstanding credit card debts. Experts suggest that most people have these issues because of medical bills, emergency expenses, and surprise expenses that they haven’t planned for. People do not have the resources to repay these bills, making it harder to return to financial health.
What Should One Do If They Have Outstanding Credit Card Bills?
The first thing to do is consider a way to pay it all back. If you do not have the means to do so, try negotiating with the bank. With the right approach and good legal representation, the bank might agree to reevaluate your debt and your payment plan.
On the other hand, if you still think that you cannot afford even reduced payments, you may also consider bankruptcy. If you are not sure how that could help you, do not worry because we will guide you through it all.
What Happens If You Fall Behind On Credit Card Payments in Las Vegas?
The first thing that you might have to deal with is a greater penalty. The loan providers have the right to increase the interest rate, which affects your payment every month to the balance amount. The companies will charge a late fee and several other things like an overdraft balance fee, which all may contribute to intensifying your problem.
Additionally, debt collectors are very persistent. The companies usually hand these cases over to debt collectors who stress you out and even harass you in order to get the money back. Creditor harassment is a major reason why people look forward to Chapter 7 bankruptcy relief.
How Does Chapter 7 Bankruptcy Work?
A person who cannot repay their loans and fears losing their assets in Las Vegas can file Chapter 7 bankruptcy. The process begins with the debtor filing a bankruptcy petition in a court of law located in a district where the debtor has his/her property and assets. The filer must also declare their assets and liabilities along with the current income and expenditures.
Chapter 7 bankruptcy in Las Vegas is a means-test bankruptcy. You’re eligible to file for Chapter 7 bankruptcy in Nevada if your income is below the median income in the state for a family of your size. Even if your income is above the median income in the state, you may still qualify for Chapter 7 bankruptcy if your disposable income after expenses is so low that you can’t make reasonable payments on your debt. To qualify, you may not have received a Chapter 7 bankruptcy discharge within the last eight years.
How Does It Help?
As soon as your bankruptcy petition has been properly filed, an injunction called an “automatic stay” will be issued. It prevents creditors and debt collectors from contacting you and from collecting debts. It will also put a temporary hold on foreclosures, wage garnishments, utility disconnections, and evictions.
However, the automatic stay will not suspend all proceedings. Our bankruptcy lawyers at Freedom Law Firm will explain to you what proceedings won’t be affected by the automatic stay during your initial (free and confidential) consultation.
Filing bankruptcy may help you clear your credit card debt in Las Vegas. The cost of filing a bankruptcy case is an important consideration. Therefore, we always let our clients know that we will work with any budget. Typically, a bankruptcy attorney’s fee ends up being a small percentage compared to the total amount of debt the client is able to eliminate.
If you would like to find out what you can do to reduce your debt in Las Vegas and whether bankruptcy is the right option for you, please request a call-back by submitting a short online form. All initial consultations are free and confidential.