When people struggling with debt in Virginia consider their options for debt relief, bankruptcy is usually investigated. Unfortunately, many people who are considering taking this step may find it difficult to actually begin the process due to financial constraints.
For borrowers struggling to pay back debts, harassment from collection agencies only aggravates the problem. Unfair collection practices make victims feel helpless and humiliated. However, borrowers and victims of unfair debt collection have rights.
Those in Virginia who are thinking about filing for bankruptcy should know that the process can do significant damage to a credit score. However, it is possible to minimize the damage over the long-term. By taking out a secured credit card or a credit builder loan, a debtor could start to establish a timely payment history.
Credit card debt declined significantly during the Great Recession but that trend appears to be over. According to data recently compiled by WalletHub, Virginia families now have as much debt as they did prior to the recession. This means more people might be struggling to pay their bills. There are a couple of reasons why credit card debt is so high.
Virginia residents who have student loan debt are generally unable to discharge those obligations in bankruptcy. While there is a provision for discharging these types of debts if they cause "undue hardship", this is a term that has never been clearly defined, and courts have traditionally set a very high standard for what it constitutes.