Bankruptcy And Credit Card Debt
Will bankruptcy help with credit card debt?
Yes, bankruptcy can be a helpful option for individuals who are struggling to pay off credit card debt. When you file for bankruptcy, you are essentially asking the court to eliminate some or all of your debts because you are unable to pay them. If the court grants your request, your credit card debts will be eliminated, and you will no longer be required to pay them.
Bankruptcy can also help with other debt, like personal loans, medical bills, repossessions, and evictions.
Chapter 7 Or Chapter 13 Bankruptcy To Help With Credit Card Debt
There are two main types of bankruptcy that may be relevant for individuals with credit card debt: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Both can eliminate credit card debt, but which one is best for can depend on: your income, your assets, and the type of debt you have.
Chapter 7 bankruptcy is a type of bankruptcy that requires you to liquidate (sell) any unprotected assets you have to pay off your debts. If you have few assets and a lot of unsecured debts (such as credit card debt), you may be able to qualify for Chapter 7 bankruptcy. If the court grants your request, your credit card debts will be discharged, and you will no longer be required to pay them. However, you may need to give up some of your assets in order to pay off your debts.
Chapter 13 bankruptcy is a type of bankruptcy that allows you to reorganize your debts and create a repayment plan. If you have a regular income and are able to pay off at least a portion of your debts, you may be able to qualify for Chapter 13 bankruptcy. With Chapter 13 bankruptcy, you will be required to make regular payments to a bankruptcy trustee, who will then distribute the money to your creditors. At the end of the repayment period, any remaining credit card debts will be discharged.
Bankruptcy And Its Consequences
It’s important to note that bankruptcy can have significant consequences on your credit score and your ability to get credit in the future. It will also stay on your credit report for up to 10 years, which can make it difficult to get approved for loans or credit cards. Therefore, it’s important to carefully consider whether bankruptcy is the right option for you, and to explore other options for managing your credit card debt, such as negotiating with your creditors or consolidating your debts.
Talk To A Denver, Colorado Bankruptcy Attorney About Getting Help With Your Credit Card Debt
We offer free consultations with an experienced Denver, Colorado bankruptcy attorney to people who are considering bankruptcy due to overwhelming credit card and other types of debt. During your consultation, you’ll meet with an experienced Denver, Colorado bankruptcy attorney.
The easiest way to schedule an appointment at a time that is convenient for you is by going to our scheduling page.
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