What Happens To Credit Card Dents After Bankruptcy
After a job loss, illness, or other financial hardship, many people find themselves forced to live on credit cards. Credit cards‘ high-interest rates and fees can quickly make a small expense into a large debt. We understand your pain.
We are licensed, professional lawyers here to help you solve your debt problems in the most efficient way possible. We are not here for you to shame you or make you feel bad about your financial situation; we are here to help you assess your options for debt relief and take control of your financial future.
Bankruptcy to Get Rid Of Credit Card Debt
Except for a few cases, credit card debt can be discharged through bankruptcy. People file bankruptcy when they have accumulated excessive credit card debt, and they often use the credit to pay for essentials like car repairs and medical bills. With a few exceptions, both Chapter 7 bankruptcy and Chapter 13 bankruptcy can eliminate credit card debt.
Chapter 7 Bankruptcy: Credit Card Debt
Chapter 7 bankruptcy will wipe out most, if not all, unsecured and non-priority debt. You can eliminate unsecured, non-priority debt in bankruptcy. Examples include medical bills, personal loans, and most credit card debt. Child support and certain tax debts are examples of non-dischargeable priorities debts you will still be responsible for.
You must also give up any non-exempt property or property not covered by bankruptcy exemptions. Your non-exempt property will be sold by the Chapter 7 bankruptcy trustee and distributed to your creditors.
Bankruptcy: Exceptions for Credit Card Debt
In some cases, you may not get to eliminate your credit card debt through Chapter 7. You can’t get rid of credit card debts that were incurred due to fraud Sometimes, the creditor may challenge your discharge of credit card debt. If the creditor is successful, the court may not discharge your debt. You will still be responsible for the debt after the case ends. These are some common scenarios:
- To deceive the creditor, you made false statements on your credit card application that were “material” in the credit card issuer’s decision to grant you credit. You have, for example, grossly exaggerated your income.
- Within 90 days of a bankruptcy filing, you have charged more than $725 to one creditor for luxury goods and services. This situation is a sign that the law assumes your intention was fraudulent.
- Within seven days of your bankruptcy filing, you received a cash advance totaling over $1,000 from one creditor.
Chapter 13 Bankruptcy: Credit Card Debt
Chapter 13 bankruptcy allows you to repay your creditors either in whole or in part by a three- to a five-year repayment plan. The repayment plan typically covers only a portion or all of your non-priority, unsecured debts, such as credit card debt.
Your pay will depend on your disposable income and non-exempt property. You can keep all your property in Chapter 13 but must pay the non-exempt portion. You’ll be responsible for the greater of these two amounts throughout your plan. Find out how to calculate the repayment plan payment. Chapter 13 filers typically pay only a tiny portion of their credit card debts and other unsecured debts, and the remaining credit card balance is discharged at the end.
Can I file Chapter 7 bankruptcy for credit cards?
All of your debt must be included in Chapter 7. If you wish to repay creditors, however, bankruptcy can be reopened. It is common to repay credit card debt.
What happens if I file for bankruptcy? Can credit card companies sue me?
No. Most creditors are prohibited from pursuing collection actions against you after you file for bankruptcy. Credit card companies are also exempt from the automatic stay; they can’t sue you, send you collection letters, call you, or engage in any other collection activity. Learn more about bankruptcy’s automatic stay.
BANKRUPTCY: UNDECIDED, UNSURE | WHAT TO DO?
We are here to help you explore your options:
Potential clients are always advised to speak to us first to determine if bankruptcy is right for them, and consultation is always free. We are most known for our hard work, creativity, problem-solving skills, and diligence. We are often the bankruptcy lawyers that other attorneys turn to when they have complex cases. Email us today at firstcallbankrupcty@gmail.com to discuss your options and learn more about what we can do. Many people think they are the only ones with financial troubles and feel embarrassed about their situation, which is invalid. Many famous people have filed for bankruptcy to start over and stop their debt from threatening their retirement dreams.
Why call First Call Bankruptcy:
We are one of the top bankruptcy lawyers in Southeastern Massachusetts, serving Bristol County and Plymouth County. Ask anyone about our reputation. We are proud of our reputation. Numerous awards have been given to us by various courts and agencies, including the Bankruptcy Court of Boston, Massachusetts.
We have helped many clients to complete their Chapter 13 bankruptcy plans over five years. They now own their homes CLEAR & CLEAR of MORTGAGES. We know how crucial it is to keep clients’ homes safe from foreclosure and to prevent creditors from attaching their wages and attempting to seize assets. We can immediately stop this and make every effort to help your clients in emergencies. Our most notable case involved the rescue of a multi-family home.
Here are some things to avoid:
Do not try to file for bankruptcy on your own. This could make your situation even worse. If the bankruptcy petition needs to be corrected, you could lose your house, car, or other possessions. Or you may be asked to file another type of bankruptcy in which you must make monthly payments. A bankruptcy trustee could foreclose your home, take your vehicle, or seize your tax refund and other assets if you need to be adequately represented. It is possible to file under the wrong chapter or apply for erroneous exemptions. You may also need to complete all forms correctly.
Take care of yourself
For a complete and free consultation on bankruptcy, call us today. We can help you protect your assets, including your car, home, and jewelry, from creditors. Although they have a job, creditors and collection lawyers are human beings who must be paid. They should also represent you. Contact us now. According to the Federal Bankruptcy Court, it is highly recommended that you seek advice from a qualified attorney.