Credit Card Debt Out of Hand?
Almost every American adult has at least one credit card in their wallets. While credit cards are necessary to establish credit, assist in home buying, car purchasing and other expenditures in today’s society, credit cards can still hold serious repercussions to those who do not handle them in a proper manner. If you have too much credit card debt because of over spending, you should speak with a lawyer as soon as possible. You may be eligible to file for bankruptcy and a bankruptcy attorney from Cherney Law Firm, LLC can help.
While credit cards do have rewards for their usage, such as cash back, airlines miles and hotel points, it is estimated that almost 50% of people are in debt from their credit card spending. Many people do not realize how much they have spent on their cards until they have been maxed out or a statement comes requesting a payment. Credit card companies rely on the idea of “purchase now, pay later” instant gratification to keep drawing people back to their cards. It is important to note that you are not alone. It is estimated that Americans as a whole have established more than $852 billion dollars’ worth of debt. If you have found yourself with extensive credit card debt, we strongly recommend that you contact a bankruptcy lawyer from Cherney Law Firm, LLC as soon as possible.
What Happens to Credit Card Debt When You File for Bankruptcy?
For many Americans, unmanageable credit card debts play a large role in their decisions about bankruptcy. However, because of the multiple options for bankruptcy, it is important to know what will happen to your credit card debt should you choose to file for Chapter 7 vs Chapter 13 bankruptcy:
Chapter 7 Bankruptcy & Credit Card Debts
In most cases, filing for Chapter 7 bankruptcy can result in the total discharge of credit card debt. However, there are some exceptions to this provision. Generally speaking, there are restrictions on discharges involving luxury goods and cash advances. While these are not absolute, it is helpful to consult with a bankruptcy attorney about what will happen to those credit card debts.
Chapter 13 Bankruptcy & Credit Card Debts
The process of paying credit card debts through Chapter 13 bankruptcy is slightly more complex since it will depend on the repayment plan that you submit. Regardless, the payments to the credit card company will be made based on how much you can afford once you enter into bankruptcy.
Working with Cherney Law Firm, LLC
Are you considering filing for bankruptcy to assist in freeing yourself from credit card debt? You need to work with a dedicated and highly experienced lawyer that will be able to provide you with the proper legal help. At Cherney Law Firm, LLC I proudly provide free case evaluations to all potential clients. Also offering free initial consultations, we can discuss every situation that led you up to this point in your life and ensure that you are heading toward financial freedom. If you have questions or concerns regarding your situation and how an attorney from my firm can assist you, do not hesitate to schedule your consultation today.