No one initially intends on racking up a large amount of credit card debt. For most people, it just happens. An illness, family emergency, loss of employment, separation and divorce can all contribute towards an increase use of the cards. You still have to put food on the table, a roof over your family's head and clothes for the kids.
Sometimes people use the cards as a source of supplemental income, to make ends meet. The problem is that they don't pay off the debt but end up just making the minimum payments, because after all the debt accumulates that's all they can afford to do. You have two (2) options. You can either attempt to discharge (wipeout) this debt or you can attempt to reorganize these debts.
Under Chapter 13 Bankruptcy, you can pay these unsecured creditors what the court determines what you can afford to pay them. Unsecured creditors include any debt without collateral, such as credit cards, medical bills, charge cards, etc. These debts would not necessarily be paid but may end up discharged which would depend on the court's ruling based upon the plan submitted and approved.
If you qualify, a Chapter 7 Bankruptcy would eliminate your outstanding credit card debts. If you qualify, depending on the size of your family (i.e. dependants), your income and the nature of your outstanding debt obligations, then Chapter 7 might be the solution to your problems.
A Chapter 7 Bankruptcy discharges a debtors debts. It's not a plan. There are no monthly payments. It takes about 3 or 4 months to process and receive a discharge. Qualification depends on your family size, income level and type of debts. If your debts are primarily unsecured credit card debt then you should consider relief under Chapter 7
Debt is like any other trap, easy enough to get into, but hard enough to get out of.
- Henry Wheeler Shaw