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Credit Card Debt Top Reason for Bankruptcy

While it seems that hundreds of companies and individuals are filing for bankruptcy each month with no end in sight, the numbers do show a small and gradual decline in national filings.

According to a leading bankruptcy research center, the statistics for March of this year show that 145,000 individuals filed for bankruptcy while 135,000 filed the following month. The reasons listed for bankruptcy filings varied, but the majority of filings the similar themes. A flagging economy, divorce, loss of employment and medical emergencies were among the top reasons cited.

In addition to these reasons, consumers cited increased credit card debts. It is a common phenomenon now days that individuals overspend on credit cards, especially during a time of personal financial crisis. Rather than helping them get through hard financial times, credit card debt may make circumstances worse and even necessitate bankruptcy.

If you are struggling with credit card debt and thinking about bankruptcy as a solution, contact a Houston bankruptcy lawyer from our office now to receive legal insight into your financial situation. In some cases, we may be able to provide you with alternatives to bankruptcy.

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