MODIFICATION AND ENFORCEMENT

Bankruptcy Eliminates Credit Card Debt

Bankruptcy can provide tremendous relief if you are facing credit card debt.  If you have credit card balances that are becoming too difficult to keep up with the minimum payment, bankruptcy may the solution for you.

Chapter 7 and Chapter 13 bankruptcy help make credit card debt more manageable by fully or partially eliminating the credit card debt.

Chapter 7 Personal Bankruptcy and Credit Card Debt

In a Chapter 7 bankruptcy, you can completely discharge and wipe out all of your credit card debt, including interest and late fees associated with your credit cards.   Even if the credit card company has hired a collection agency or filed a law suit, Chapter 7 bankruptcy can eliminate these inflated unsecured debts.

Chapter 13 Personal Bankruptcy and Credit Card Debt

Under Chapter 13 bankruptcy, credit card debt is not usually completely eliminated, but you can rest assured you will only pay back what you can afford to pay back.  That is because e Chapter 13 allows you to propose reasonable repayment plan where you pay back to the credit card companies (through the Trustee) and their collection agencies only what you can afford regardless of what you owe.  The amount you can afford is based on the amount of  disposable income available to you.

Your Chapter 13 payment plan (also know as wage earners plan) will last between three and five years, but during the plan, credit card companies can not harass you, sue or try to collect from you in any manner.  At the end of the plan, any remaining credit card debt is completely eliminated.

Have No Remorse For the Credit Card Companies

Very often clients express guilt that they are unable to keep up with their credit card payments.  Keep this in mind.  Many of the clients really have tried to catch up and pay off their credit card debt, but are unsuccessful due to the high interest rates and other unreasonable fees.  If the credit card companies wanted to work with you, they would provide consumers with lower, more realistic interest rates that made repayment more manageable.  Most credit card companies are more concerned about their bottom line and not your individual situation.  So how much remorse do they deserve from you.

Discuss Your Credit Card Debt With an Experienced Bankruptcy Attorney

Credit card debt can be overwhelming, but it does not have to prevent you from reaching financial freedom and a fresh start.  Consult with an experienced Texas Bankruptcy attorney to discuss how to get out of credit card debt.