Protecting Your Rights And Your Future

Bankruptcy emerges as the best option when debt is overwhelming

| Dec 1, 2015 | Personal Bankruptcy

More and more, the habits of consumers and the conveniences of shopping make the use of credit cards more prevalent than using cash. That is particularly true for online purchases, which are dependent largely on credit or debit cards. The fact is that these habits lead to overspending in some cases, and when the pattern is repeated over and over again, the individual or married couple may face a frustrating financial stranglehold. In order to obtain debt relief, there are several options, including bankruptcy, in Arkansas as well as in all other states.

The options, of course, all have a downside due to the fact that being overloaded with debt has no rosy outcomes and is not a winning situation. When the overwhelming debt load becomes unmanageable, creditor dunning will be initiated, almost instantly in many cases. However, the dunning is essentially irrelevant if the individual or couple have dug a deep enough hole from which they cannot easily or quickly emerge.

No matter what tactics a creditor uses, the borrowers are going to be paralyzed in their response if they simply don’t have the income to make reasonable arrangements. A lot of time is wasted by borrowers who promise full compliance to bill collectors when such compliance is realistically impossible. It might be said that the borrowers are in a state of denial, and the creditors who make such all-or-nothing demands are also not productively looking at the facts.

Due to the fact that overwhelming debt is virtually impossible to manage when creditors are demanding substantially more than the borrowers can possibly handle, the borrowers get pushed to the wall; at some point a more realistic approach must be found. That is where filing a bankruptcy comes into focus as the most prudent course of action. Where the overwhelming debt is unsecured, as in credit cards and medical bills, a bankruptcy by Arkansas residents will wipe out those bills totally, quickly and permanently.

Source: yourhoustonnews.com, “Care for Your Credit During Holiday Shopping“, Katherine Cabaniss, Nov. 27, 2015

Archives