There are many reasons that people in California find that it is in their best interest to file for bankruptcy in California. For some, it is the amount of unmanageable debt that they have accumulated. For others it is life changes such as divorce or illness. Regardless, bankruptcy can offer a chance to gain financial relief from overwhelming debts.
In a recent report that may be of interest to our readers in California, a study found that the numbers of people who have begun to accumulate unmanageable debt through credit cards is increasing. At least for those who are older, above the age of 50. In fact, younger people have reduced the amount of credit cards that they owe.
It appears that older people who have credit card debt have accumulated it throughout the recent recession and housing bubble. In some case, banks encouraged people to take out the equity in their homes as the market rose. When it fell, they found that they could no longer pay the debts that they had accumulated.
This has led to an increase in those who are seeking to find ways to deal with unmanageable debt. Bankruptcy is one option that ahs the benefit of discharge for unsecured debts when it is successfully ended. There are many options for such an action, including filing a Chapter 7 or a Chapter 13. Making the decision as to how to seek the benefits of a bankruptcy can be confusing for some and a careful review of the available choices may be important and beneficial.
Source: The Wall Street Journal, "More retire with mortgages, credit-card debt," Alicia H. Munnell, June 5, 2013