Debt Information

Can I eliminate credit card debt with bankruptcy?

Are you having difficulty paying your Debt – Credit Card bills? Are the balances ever increasing due to the high interest, even though you make the minimum payments? Has your balance got so out of hand and you don’t know what to do?

If this is the case, bankruptcy may be a viable alternative, to struggling to keep up with this ever-increasing debt. Here are some pointers to assist you in figuring out if you should stop making credit card payments and file for bankruptcy instead.

Determine whether you can afford to pay off the debt

If you’re thinking about filing for bankruptcy, the first step is to figure out if you can afford to pay off or reduce your credit card debt. You may or may not be eligible for Chapter 7 bankruptcy, which will fully wipe off your debt, depending on your income. If your income is sufficient, you may be required to file for Chapter 13 bankruptcy and repay all or part of your debt through a repayment plan.

Are you being harassed or sued?

When you stop paying your Debt – Credit Card bills, the creditor and collection agencies will start calling you. The longer you wait to pay, the more regular and obnoxious the phone calls will become. These contacts are frequently the catalyst for persons considering bankruptcy.

Depending on the circumstances, your creditors may file a lawsuit in state court to force you to repay your obligations. If the credit card company wins in court, you could have your salary garnished or your possessions were taken away. If you file for bankruptcy in these situations, you will be able to escape these consequences.

Determine the amount of nonexempt property you own

Chapter 7 bankruptcy may not be the best option for you, depending on your income and assets. If you own a lot of property, the trustee in bankruptcy may sell some of it to satisfy your creditors. If you file Chapter 13 bankruptcy, you will keep all of your assets, but you will have to pay creditors an amount equivalent to the total worth of your nonexempt assets. Make sure to check your state’s bankruptcy exemption laws before deciding whether bankruptcy is in your best interests.

Decide whether you should stop making payments

Once you’ve started the bankruptcy procedure, you should generally stop paying credit card payments. If you haven’t decided if bankruptcy is suitable for you, keep making payments on your credit card to avoid creditors harassing you and causing more damage to your credit.

As always, the bankruptcy attorneys of Hilbern Law are here to help with any and all of your bankruptcy concerns. Give us a call today.

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