One of the most common reasons for filing bankruptcy is to get rid of credit card debt. Whether you had to rely on credit cards because of job loss or unexpected expenses, or if you made too many large purchases, you are not alone in having unmanageable levels of credit card debt. This debt easily snowballs with high interest rates and late fees. Fortunately, we are able to help you get things back under control.
If you qualify, Chapter 7 allows you to discharge credit card debt. In other words, your bills will be completely wiped out and you will not have to pay one cent to the credit card companies. Chapter 13 on the other hand treats credit card debt as unsecured, which means that you will have to pay a percentage of it. This percentage is based upon how much you can afford to pay. Chapter 13 consolidates your unsecured debts, reduces the interest rates to 0% and gives you a manageable monthly payment amount.
Avoiding Fraud Accusations
You are not allowed to make any charges on your credit card within 90 days of filing for bankruptcy. If you do, you may be disqualified from getting bankruptcy protection. When you come in for a consultation, we will analyze your history of credit card usage to find any potential problems. If there are substantial charges, we may recommend waiting to file bankruptcy for a few months to avoid complications down the road.
To arrange a free consultation, please call Daniels Associates at 502.583.8300 or contact us online.