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How Much Debt Is Too Much?

Everyone seems to have that one friend or family member who always seems to be struggling financially. Whether it is from student loans, credit card debt, or making investment missteps; it is easy to fall into financial traps that are hard to get out of if you do not have a plan. But the amount of debt one person carries without worry may not be the same for the next person. The way finances are handled on a daily basis is a personal issue, but if you are not able to pay all o of your bills then it is safe to say you have too much debt. If this is your situation, there are ways out from under the overwhelming burden of owing more money to creditors than you can repay.

The most popular way to eliminate debt is to file for bankruptcy. Consumers have two choices when seeking the protection of bankruptcy, as follows:

  • Chapter 7: this type of bankruptcy filing is like a liquidation of unsecured debt. Your credit card debt will be eliminated in its entirety during a Chapter 7 case, which gives you some freedom and flexibility in your budget. When you no longer have to make monthly payments on credit card balances that seem to go nowhere, you can take that money and save it or put it towards secured debt like your house or car.
  • Chapter 13: this type of bankruptcy filing is like a debt consolidation. In a Chapter 13 you will have to repay at least a portion of your unsecured debt, and still pay on your secured loans if you wish to keep the collateral. A Chapter 13 can last for up to 5 years, and during that time you will make a plan payment to the Chapter 13 trustee and he or she will distribute payment to your creditors.

There is no real number than can be identified as “too much debt”, the answer is personal. The bottom line is if you are not able to make ends meet every month, you need relief. We can help, call us today to find out how.

For more information about bankruptcy, contact us at We will help by coming up with solutions that work for you.



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