In these challenging economic times, where inflation is making headlines, managing finances has become more complex than ever. A recent article ( https://www.npr.org/2024/05/14/1251295805/credit-cards-debt-inflation ) sheds light on the increasing burden of credit card debt on American households. As a bankruptcy attorney, I see the impact of this burden on a daily basis, and it's essential to address this growing concern. Inflation has a domino effect on the economy, and one of the most immediate impacts is on purchasing power. As prices rise, consumers may turn to credit cards to bridge the gap between their income and expenses. While this may offer a temporary solution, it can lead to a cycle of debt that's difficult to escape. The article points out that credit card balances are rising at a rate not seen in years. This is a clear indicator that more and more people are relying on credit to manage their daily lives. However, with higher balances come higher interest rates and minimum payments, making it even harder for individuals to pay down their debt. As a bankruptcy lawyer, my role is to help clients understand their options when facing overwhelming debt. Bankruptcy can provide a fresh start for those who have exhausted all other avenues. It's a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the bankruptcy court. The decision to file for bankruptcy is difficult. It's important to consider all factors, including the effects on one's monthly cash flow and financial stability. However, despite the myths concerning what bankruptcy is and how it affects your credit and assets, it can be the most viable solution to regain control of your financial situation and escape the trap of the debt cycle. If you're struggling with credit card debt, it's crucial to seek professional advice. We at Atlas Law Firm can help you assess your financial position and guide you towards the best course of action. Remember, you're not alone in this, and there are legal solutions available to help you navigate through these inflationary times. Don’t settle for believing the myths. Talk to a professional who can tell you what the pros and cons of bankruptcy actually are for your situation. That way, you can make an informed decision on how best to resolve your financial problems. The process starts with a free consultation.

Prior to 2005, there were qualifications in place to qualify for a chapter 7 bankruptcy. Prior to 2005, the qualifications for chapter 7 were based on your monthly budget. The trustee would look at your income and expenses, and conduct a money in / money out analysis. This does not count the payments on any of the debts that you were making, because those are going to be discharged and you are no longer going to be making payments on them. If after you pay your monthly expenses, you are going to have a significant amount of money left over at the end of the month, that disposable income could lead to an objection to you discharging the debt in a chapter 7 bankruptcy. If the objection was successful, you would be required to do a chapter 13 payment plan.