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Personal bankruptcy in California helps after holiday spending

It can be easy for people in California to take on high amounts of credit card debts. This is especially true during the holiday season when stores are filled with sales and offers of discounts. Some people find these temptations hard to resist. When they are unable to repay what they owe after the holidays end, some find it a good choice to seek a personal bankruptcy.

A recent report that our California readers may find interesting asserts that only 27 percent of all consumers fully comprehend the amount of interest that they are being charged on their credit card balances. This can lead to shock for some who learn that they have accumulated high credit card balances that they may have difficulty repaying. A failure to repay can lower credit scores and make obtaining favorable credit terms more difficult.

Those who cannot repay the debts that they have accumulated through the use of credit cards sometimes turn to the filing of a personal bankruptcy. There are several options for people in this type of situation, including a total liquidation under Chapter 7 or a repayment plan created as a part of a Chapter 13 bankruptcy. Each of these has requirements that can be discovered as a person works to learn about the process before beginning it.

Filing for a personal bankruptcy in California is rarely a first choice for people. However, when they spend more during the holiday season that they are able to repay, they sometimes find it to be a good choice. This is especially true for those who are unable to repay even small amounts of debt and who have, often through no fault of their own, discovered themselves in financial stress.

Source: philly.com, Kicking the credit-card habit, No author, Dec. 10, 2013

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