Arkansas residents who are thinking about bankruptcy may be interested in some information regarding different types of debt. At a time when the average U.S. household with one or more credit cards has more than $15,000 in credit card debt and the numbers of individual bankruptcies are higher than ever, it can be surprising to learn that some debt is actually good to have. These "good debts" include things that are necessary but can't be paid for in full up front, such as a home or education. As long as the monthly payments are affordable, these debts can be acceptable.
While credit card creditors are normally unsecured ones, they may seek to gain a security interest in a debtor's property by filing a civil lawsuit. In the event a judgment is obtained, the creditor may then attempt to enforce the judgment by garnishing wages, levying bank accounts or placing liens against property for the judgment amount.
Data collected in Arkansas and across the nation indicate that has been a wide degree of variation in the amount owed by households that use credit cards. The average American household that holds debt now carries a liability of $15,608. This number has fluctuated substantially over the last decade, but it appeared to have be holding steady over the last four years until it encountered a slight increase in 2014.
An Arkansas homeowner going through a bankruptcy may be concerned about issues relating to a home, especially if there is an interest in keeping the home as other debts are discharged. A second mortgage may present a concern due to the fact that it creates a lien against the home. A default on a second mortgage could result in foreclosure action, but bankruptcy may actually prevent this action by means of lien stripping. This is dependent on the type of bankruptcy filing selected.