Credit Card Bankruptcy
Good News! You CAN discharge credit card debt in bankruptcy. In fact, most bankruptcy cases we file discharge credit card debt – often a lot of it. This is a credit card bankruptcy.
If you need answers or help concerning credit card debt then you are not alone. Millions of consumers face this issue and tough economic times have made many consumers unable to meet these bills. Credit card debt can increase quickly, with late charges, exorbitant interest rates, over account limit fees when monthly minimum payments are missed, and other charges adding up fast. Personal bankruptcy can help most consumers deal with credit card debt effectively and give these individuals a fresh financial start, by discharging credit card debts. Credit card bankruptcy is more common than you know.
Filing for Chapter 7 bankruptcy protection can help resolve and discharge credit card debt in many cases. Trying to deal with credit card companies without filing for bankruptcy normally leads to a lot of frustration but few if any results. The card companies do not care why you cannot meet your bills, and will demand payment even if you have a very limited income and have children to feed and provide for. A bankruptcy attorney can help you deal with the credit card companies and gives you the upper hand in this situation.
A Chapter 7 Bankruptcy Filing Stops All Collection Activities For Credit Card Debt and allows you to discharge credit card debt. Credit card bankruptcy can help balance your budget and give you some breathing room.
As soon as a petition is filed in bankruptcy court then all collection activities on the debts listed in this petition must stop immediately. This is an automatic stay and collection activities cannot resume until the case is closed or the bankruptcy judge gives permission for the specific debt to be collected on. If a credit card company tries to collect on a listed debt in any way then the company may face severe penalties from the bankruptcy court.
In most cases a chapter 7 bankruptcy case can discharge all credit card debt that is owed. This includes the initial debt amount as well as any late fees, over limit charges, additional interest amounts accrued, and other assorted or various fees that the credit card issuer may apply to the account. Credit card debt that was incurred within 6 months of filing for bankruptcy may not be forgiven in some cases though if the court suspects any type of fraud or unethical dealings by the petitioner.
Stop Wage Garnishments, Judgment Collections, Bank Account Seizures, And Other Collections
You Can Discharge Credit Card Debt in Bankruptcy
Credit card debt can result in lawsuits, judgments, wage garnishments, frozen bank accounts, and many other problems. Filing for credit card bankruptcy puts an immediate halt on all of these collection activities, and discharges the credit card debt. Until further notice from the bankruptcy court the creditor cannot try to enforce any judgment, sue you in court, or try to seize money from your wages, bank accounts, or other sources. Usually all credit card debt is discharged during the bankruptcy so you get a fresh financial start and these debts are wiped clean. Credit card bankruptcy can be the first step to a fresh start.