Chapter 7 bankruptcy is a way out of the credit card trap. It can mean the difference between getting a fresh start or being burdened by credit card payments for 20 years.

Too many consumers do not understand the consequences of unpaid or otherwise delinquent credit card debt.

It is in the creditor’s best interest to keep a consumer in debt. The reason is that’s how the creditor earns money–by collecting interest on the debt. Many people don’t realize the cost of credit and the dangerous cycle of monthly interest payments.

For example, a family, who already carries a significant balance on their credit cards, wants to buy the latest flat panel TV and entertainment system for $3,000. Of course, they charge it. When it comes to paying the credit card bill, they only make the minimum payment. Assuming that the interest rate is about 20%, it will take them about 39 years to pay off the bill.

For individuals that qualify, filing a Chapter 7 bankruptcy will discharge all dischargeable credit card debt thereby affording debtors a fresh financial start.

Consequently, exercising your rights under Chapter 7 of the Bankruptcy Code is an option that should be considered.