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Seeking relief from bill collectors? Consider bankruptcy.

Washington readers know that credit card use can quickly spiral out of control, and soon, many consumers will need to seek ways to get relief from bill collectors. While credit card debt is not the only debt with which people struggle, it is one of the most common problems. When credit card debt becomes unmanageable, how can debtors find relief from bill collectors? One option could include certain types of bankruptcy.

Bankruptcy is an option when people find themselves in a frustrating cycle of accumulating debt, large interest rates and an income too small to pay off the debt. Credit card debt can be a source of these issues because of the tricky nature of credit cycles and the often deceptively high interest rates. Sometimes debt accumulates when an income source is too small to make significant headway on a debt. Other times, a Washington resident may lose his or her job and be unable to keep up with financial obligations.

The particular circumstances of each case will dictate the specific type of bankruptcy needed, but a case evaluation could help determine the best route. A thorough examination of all aspects of the individual case could be the best way to determine how to proceed. Chapter 13 and Chapter 7 bankruptcy both have different requirements, all of which should be considered. Additionally, any consumer filing for bankruptcy will have to submit to credit counseling.

Credit card debt or other kinds of debt, such as medical bills, can overwhelm a person. Declaring bankruptcy may not be the only way to get relief from bill collectors, but it can be a good choice in certain circumstances. It would be wise to explore all options before making a final decision regarding the best way to achieve needed debt relief.

Source: businessdayonline.com, How to know when to declare bankruptcy, No author, Feb. 10, 2014

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