Will Bankruptcy Discharge My Credit Card Debt?
If you are drowning in credit card debt and considering bankruptcy as a solution, you are naturally wondering if the process will discharge your credit card debt. It’s completely understandable to be concerned about your financial future and to search for answers. At Reed Law Firm, we want to assure you that bankruptcy can indeed discharge your credit card debt, as long as you proceed through the process correctly.
It’s important to consult an experienced South Carolina bankruptcy attorney to fully understand the implications and process of filing for bankruptcy. We are here to assess whether bankruptcy is the right choice for you and your debt situation and, if so, guide you through the steps.
Don’t let the stress of credit card debt hold you back any longer – contact Reed Law Firm today for a confidential consultation.
Understanding Bankruptcy and Credit Card Debt Discharge
Bankruptcy is a formal process set out by federal law that provides individuals and businesses with a fresh financial start by eliminating or restructuring their debts. Elimination of debts in bankruptcy is referred to as a discharge, though not all debts are dischargeable in every case.
Credit card debt is unsecured debt, which means it does not have any collateral attached to it. Fortunately, this type of debt is typically dischargeable in bankruptcy.
Further, when you file for bankruptcy, an automatic stay goes into effect, which stops creditors from taking any collection actions against you, including lawsuits, wage garnishment, and harassing phone calls. This can relieve immediate stress if your credit cards are in collections.
Chapter 7 Bankruptcy and Credit Card Debt
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is the most common type of bankruptcy for individuals. In Chapter 7 bankruptcy, non-exempt assets are sold to repay your creditors, and any remaining debts are discharged. This includes credit card debt.
To qualify for Chapter 7 bankruptcy, you must pass the means test, which compares your income to the median income in your state. A bankruptcy lawyer will evaluate your financial situation and determine if you qualify for Chapter 7 bankruptcy.
Chapter 13 Bankruptcy and Credit Card Debt
If you don’t qualify for Chapter 7 bankruptcy or you have substantial assets you want to protect, Chapter 13 bankruptcy may be a viable alternative. Chapter 13 bankruptcy allows you to create a repayment plan to pay off your debts over a period of three to five years.
Under a Chapter 13 repayment plan, you may only be required to pay a portion of your credit card debt, and the remaining balance will be discharged at the end of the plan. Your bankruptcy attorney will work with you to develop a repayment plan that fits your budget and helps you become debt-free.
Work With a Bankruptcy Lawyer in South Carolina
If you are struggling with credit card debt and considering bankruptcy, an experienced South Carolina bankruptcy attorney from Reed Law Firm can help. To learn more about how bankruptcy can discharge your credit card debt and to discuss your specific circumstances, contact us today. We offer a free, confidential consultation to assess your situation and provide personalized guidance. Take control of your financial future – call us now.
