Discharging Credit Card Debt Through Bankruptcy
Credit card debt presents one of the biggest reasons people file for bankruptcy. These debts can be burdensome, and their interest rates can make full repayment difficult or even impossible. If you are plagued with significant credit card debt, it is important to understand your rights and options.
Bankruptcy filing provides many options for relief, but it is important to file in the best possible way, with your unique circumstances and needs considered first and foremost. Having helped thousands of clients in more than 35 years of practice, we are ready to help you get a clean slate on financial life.
Most Credit Card Debt Is Unsecured, but Some May Not Be
It is important to realize that credit card debt is unsecured. In practice, this means that there is no collateral to back it up. Because of that, the debt is dischargeable in bankruptcy. Cash withdrawals or credit card purchases close to filing may not be discharged, however.
If you pursue a Chapter 7 bankruptcy filing, most of this debt will be discharged and you will have a clean slate without being required to pay the debt. A Chapter 13 bankruptcy filing requires a three- to five-year payment plan but is often a better choice for people who have more significant assets, or recent tax debt.
Regardless of your unique circumstances, we will work directly with you and help you pursue a method of filing that is best for you.