Credit Cards & Other Types of Debt

Debt can take one of many forms, whether it is a debt secured by collateral such as a car or a house, or unsecured debt such as credit card debt, a tax debt owed to the government, back rent owed to a landlord, or even medical debt. No matter the form, excessive debt can cripple one’s financial health. This subsection addresses some of the most common forms of consumer debt in the United States.

For many years, credit card debt represented the largest subsection of consumer debt in the United States, and even today, credit cards represent one of the top three causes of consumer debt in this country. Credit cards are often high interest rate debt, meaning that when you pay off the card over a long period of time, you can end up paying far more than the purchase price of the goods.

In the very recent past, student loan debt has eclipsed credit card debt as the number one cause of debt for American consumers. To make matters worse, the United States Bankruptcy Code makes it very difficult to discharge student loan debt through a bankruptcy. There are, however, options available outside of bankruptcy to help those with student loans. For more information, please visit our Student Loan Debt page in this subsection.

Most taxes, like most student loans, are generally not dischargeable in Bankruptcy. There are certain circumstances where taxes can be discharged in bankruptcy, and non-dischargeable taxes can be paid through a Chapter 13 payment plan. If you owe taxes and are considering bankruptcy protection, please visit our pages on taxes and non-dischargeable debt, and if you’d like to schedule a free consultation with Grainger Legal Services, please fill out the contact form.

The vast majority of secured debts are either car loans or home loans secured by a mortgage on the real estate. These debts are “secured” meaning that the creditor has a right to repossess or foreclose on the property if you stop paying on the loan. If you are behind on one of these types of loans, a bankruptcy can provide you the opportunity to catch up on your arrears. If this is your situation, local bankruptcy lawyer Chuck Grainger can help guide you through your options regarding your secured debt.

If you’re currently renting your house or apartment and you are behind on your rent payments, a Chapter 13 repayment plan can help you catch up your back rent and allow you to keep living there. This option is, however, very tricky and requires that certain criteria are met, such as a prompt and reasonable cure of the back rent. Montgomery bankruptcy lawyer Chuck Grainger can assess your situation if you’ve fallen behind on your rent, and help determine whether a bankruptcy is right for you.

Regardless of what kind of debts you owe, experienced Prattville bankruptcy attorney Chuck Grainger can meet with you and help you determine if Grainger Legal Services can help you with your financial situation. At Grainger Legal Services, we strive to put our clients in the best possible situation for success. We serve clients in from our offices located in Montgomery, Prattville, and Troy, Alabama. You can call or text us at (334) 260-0500 or contact us online to schedule a free consultation with Mr. Grainger to see how we can help you get out of the hole.