Reduce Credit Card Debt
Bankruptcy is one potential way to reduce credit card debt. The bankruptcy debt discharge relieves individuals of debts like outstanding credit card debt. This can allow people a fresh start, and helps them to contribute once again to society and the economy without feeling overwhelmed by debts they can't pay.
Credit card debt is an unsecured debt. Unsecured debts are those that aren't connected to physical collateral, like a house or a car. An unsecured debt is a loan that a bank or other lender type made based solely on the borrowers ability to repay. Most of these, including credit card debt, are eligible to be eliminated during the process. During Chapter 7 bankruptcy, such debts are typically discharged fairly quickly, often within six months of filing for bankruptcy.
Could filing bankruptcy be right for you? A local bankruptcy attorney may be able to answer your questions about discharging credit card debt and finding relief. Learn more with an attorney today - simply use the free case review form below to connect with a bankruptcy attorney for a no-obligation consultation.
Bankruptcy May Hold Off Debt Collectors
One of the benefits of filing for bankruptcy protection is the automatic stay, a legal mechanism that stops debt collectors from contacting borrowers about outstanding debt as soon as they file for bankruptcy. This court protection prohibits debt collectors from calling, writing letters or otherwise contacting the filer about debts during the bankruptcy case. Many people feel like this gives them the breathing room that they are searching for.
Bankruptcy can be a way to relieve stress that many individuals feel over their debts, like credit card bills and medical debt. The automatic stay is one part of this process. The legal system steps in and stops debt collectors from hounding debtors. And in some circumstances, the automatic stay can halt home foreclosures, repossession, wage garnishments, license suspensions and more.
Chapter 7 Bankruptcy Filing
Those with overwhelming credit card debt who file for bankruptcy often choose to file for Chapter 7 bankruptcy. Chapter 7 bankruptcy, also known as liquidation, is the form of bankruptcy that enables the discharge of credit card debt, and get a fresh start.
A Bankruptcy Attorney May be Able to Answer Questions
If you want to learn more about bankruptcy and credit card debt, you may be able to talk to one of our sponsoring bankruptcy attorneys. Fill out the free case evaluation form below and we can connect you with an attorney in your area today.