How to File Bankruptcy and Eliminate Credit Card Debt

If you are suffering because of credit card balances that you can no longer manage, filing for bankruptcy can help you get your financial life in order. Credit card debt can get overwhelming when you lose a job for even just a few months or your income is reduced for some other reason. If you need a way out of your debt situation, consider whether bankruptcy is right for you.

Filing Bankruptcy to Eliminate Credit Card Debt

To find out if bankruptcy is a good remedy for your credit card debt, you should discuss your finances with a bankruptcy attorney at the outset. A attorney will be able to tell you whether you qualify and what chapter is right for you. You will need to disclose all of your assets as well as your debts, and may be allowed to keep exempt assets depending on your case.

Your eligibility to file for either Chapter 7 or Chapter 13 bankruptcy will depend on how much money you have made in the past six months on average and your assets and debts. Chapter 7 bankruptcy eliminates most credit card debts. In some cases, it eliminates all credit card debt. This can be a great relief if you have been stressing out over finances. You can only file for Chapter 7 if you meet your states income requirements and do not have many personal assets that would get in the way.

If you own a home or other personal property that you want to protect in your bankruptcy, then Chapter 13 might be better suited for your needs. Chapter 13 is a debt restructuring program that reduces, but does not eliminate unsecured debts. You will still be required to pay a monthly payment on your debts for three to five years until your repayment plan has been paid in full. This can provide great relief if you have been living paycheck to paycheck or barely getting by, plus you can protect some property.

Getting Legal Help

If you need to file bankruptcy and eliminate credit card debt, the process will be easier if you hire an attorney to assist you. An attorney will walk you through the process step by step, explaining your options, your rights and obligations and advocating on your behalf in court proceedings. Attorneys who practice bankruptcy law have a system for handling cases which makes it more efficient and faster.

Think Bankruptcy Might Be for You?