Chapter 7 Bankruptcy Can Eliminate Credit Card Debt
Dealing with credit card debt is often one of the most vexing problems facing consumers today. If you find yourself in the situation of ever-increasing debt and are unable to make minimum monthly payments, late charges and are facing ridiculous interest rates on credit card debt, you should consider personal bankruptcy options. Either Chapter 7 Personal Bankruptcy or Chapter 13 Personal Bankruptcy can help make credit card debt manageable. A Chapter 7 Personal Bankruptcy can eliminate credit card debt and Chapter 13 Personal Bankruptcy can eliminate some or most of credit card debt. Regardless of the type of personal bankruptcy you file, dealing with credit card debt in bankruptcy is much easier that dealing with debt outside of bankruptcy.
Chapter 7 Bankruptcy
In a Chapter 7 Personal Bankruptcy, you can eliminate, or discharge, 100% percent of your credit card debt. You can also use Chapter 7 Personal Bankruptcy to eliminate all late fees, overage charges, interest and any other charge or fees associated with credit card debt. Even if your credit card company has filed a lawsuit or obtained a judgment against you for nonpayment of credit card debt, you can file a Chapter 7 Personal Bankruptcy to stop the lawsuit and eliminate the credit card debt. Chapter 7 Personal Bankruptcy will also prevent, or stop, wage garnishments due to lawsuits from unpaid credit card debt and even unfreeze a frozen bank account. Chapter 7 Personal Bankruptcy is a way to completely eliminate credit card debt, and stop all collection associated with credit card debt.
Chapter 13 Bankruptcy
While a Chapter 13 Personal Bankruptcy cannot usually eliminate all of your credit card debt, Chapter 13 Personal Bankruptcy can eliminate the vast majority of credit card debt by creating a reasonable repayment plan. When you file a Chapter 13 Personal Bankruptcy your pre-filing credit card debt is stopped from increasing! No more additional interest. No more late fees. No more over-the-limit charges. Your credit card companies can no longer add to what you owe. Over the life of your Chapter 13 Personal Bankruptcy, based on several factors such as your income and equity you may have in property that you own, your credit card companies will receive only what you can afford, regardless of what you owe. If you successfully complete the Chapter 13 Personal Bankruptcy repayment plan, everything you did not pay will be eliminated, or discharged. Paying back what you can over 36 to 60 months is much more sensible then paying back your credit cards on their terms!
Choosing to deal with credit debt without the help of either a Chapter 7 Personal Bankruptcy or Chapter 13 Personal Bankruptcy can be a daunting task. For instance, if you have one credit card with a balance of $5,000.00, and you chose to pay back only the minimum each month it may take decades to completely pay off the debt. If you owe more that $5,000.00 it might take several lifetimes to pay credit cards back if you should chose to deal with credit card debt outside of bankruptcy. Further, if you cannot keep up with the minimum payments that the credit card companies require you run the risk of being sued, or worse, the garnishment of your wages or having your bank account frozen. Dealing with credit card debt in a Chapter 7 Personal Bankruptcy or Chapter 13 Personal Bankruptcy is much more sensible option paying creditors directly.
To find out how you can better deal with credit card debt in a either a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy contact The Law Offices of David Lozano right away.