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Originally Posted On: https://lazaruslawoffice.com/blog/gain-control-of-your-credit-card-debt-in-lancaster-pa
It can start with just a few charges, but over time, credit card debt can grow into an overwhelming burden. The constant calls from collectors, the stress of watching interest pile up, and the feeling of being trapped can take a significant toll on your life. If you’re struggling under the weight of credit card debt, know that you’re not alone, and there are effective legal paths to regain control. The first step is often the hardest, but seeking advice from an experienced lawyer in Lancaster, PA, can illuminate the options you may not have known you had.
At Lazarus Law, we understand the anxiety that comes with financial distress. We’ve seen how quickly high interest rates can turn a manageable balance into an insurmountable mountain. Many people try to chip away at their debt by making minimum payments, only to find that their balances barely budge month after month. This isn’t a personal failure; it’s how the system is designed. Breaking free from this cycle often requires a more powerful solution.
When Minimum Payments Aren’t Enough
Making minimum payments on high-interest credit cards is like trying to bail out a boat with a leaky bucket. The interest that accrues each month can often be more than the minimum payment itself, meaning you can pay for years without making significant progress. This can lead to a cycle of financial stress where you’re forced to use credit cards for daily necessities, digging the hole even deeper.
When you’re facing wage garnishments, lawsuits from creditors, or the constant threat of collection actions, it’s clear that a new strategy is needed. While some may consider debt consolidation loans or other settlement options, one of the most powerful and effective tools for relief is bankruptcy. It’s a legal process designed to give honest but unfortunate individuals a fresh start.
How Bankruptcy Provides a Path Forward
The word “bankruptcy” can be intimidating, but it’s important to understand it as a legal tool designed to protect you and provide a structured way out of debt. For individuals struggling with credit card balances, there are two primary types of bankruptcy to consider. A knowledgeable attorney can help you determine which is right for your unique situation.
Chapter 7 Bankruptcy: A Fresh Start
Often called a “liquidation” or “fresh start” bankruptcy, Chapter 7 is designed to wipe out your unsecured debts completely. Credit card debt is a primary example of unsecured debt. Here’s what happens:
- Automatic stay: The moment you file for bankruptcy, an “automatic stay” goes into effect. This is a court order that immediately stops all collection activities. Creditors cannot call you, send letters, garnish your wages, or continue with any lawsuits against you.
- Debt elimination: For most people who qualify, Chapter 7 bankruptcy will discharge (eliminate) all of their credit card debt, along with medical bills and personal loans. This allows you to start over with a clean slate.
- Asset protection: Many people worry about losing their property. Pennsylvania has exemptions that protect essential assets like your home, car, and retirement savings, meaning most filers don’t lose any property.
Chapter 13 Bankruptcy: A Reorganization Plan
If you have a steady income but have fallen too far behind to catch up, Chapter 13 bankruptcy may be the right solution. This is a “reorganization” plan that combines all your debts into one easy-to-manage payment, which you make over three to five years.
- Stopping interest: A Chapter 13 plan can drastically reduce or even eliminate the ongoing interest on your credit card debt, allowing your payments to go toward the principal.
- Affordable payments: Your payment plan is based on what you can actually afford to pay, not what the credit card companies demand.
- Comprehensive relief: At the end of your repayment plan, any remaining unsecured debt, including credit card balances, is typically discharged.
Contact Our Team in Lancaster, PA
You don’t have to live with the stress of overwhelming credit card debt forever. Filing for bankruptcy is a powerful legal right that can provide immediate relief and a long-term solution. The process can be complex, but you don’t have to navigate it on your own. The team at Lazarus Law is dedicated to helping people in our community find their way back to financial stability. We will review your situation, explain your options in clear terms, and guide you through every step of the process.
Contact us today for a free consultation and let our experienced lawyers in Lancaster, PA help you take the first step toward a brighter financial future.