Missed payments on credit cards can create an avalanche of late and over-limit fees coupled with increased interest rates. Once manageable accounts have now grown completely out of control. Your phone rings constantly as you experience creditor harassment, perhaps for the first time.
At Reed Law Firm, P.A., we understand the pressure you feel over out-of-control debt and the fear you are experiencing in even considering the prospect of bankruptcy. Our job is to stand by you throughout the entire process of filing Chapter 7 or Chapter 13 debt relief and secure the fresh start you need.
At Your Side During the Process of Discharging Credit Card Debt
In the filing of a Chapter 7 bankruptcy, your attorney can assist with the discharge of credit card debt. This is usually a fairly simple process, assuming there are no claims of fraudulent actions or use of the card without any intention to pay it back. It is important to note that running up a credit card balance prior to bankruptcy can result in that debt being challenged by the credit card company. It is also important to know that paying a credit card bill right before you file may not be in your best interest, either. We recommend that you not use your cards or pay another credit card bill until you talk to us about the best way to get out of debt.
How Will Bankruptcy Affect My Credit Rating?
It is a common concern that filing for bankruptcy will mean you will not be able to get a credit card ever again. The fact is, while bankruptcy affects your credit rating in the short term, it will improve your credit long term by eliminating unpaid debts from your record. Most people who file bankruptcy have a better credit score than before they filed within a year or two. Bankruptcy itself disappears from your credit report after 10 years, but it doesn’t take 10 years to rebuild your credit score. You should be able to acquire a credit card with reasonable interest rates within a short time after filing the bankruptcy. Most people can get a mortgage within about 2 years after filing.
Reorganizing Credit Card Debt Through a Chapter 13 Filing
If you cannot qualify for a Chapter 7 bankruptcy, a Chapter 13 reorganization remains a viable option. You will be required to pay back a portion of your debt over a three- to five-year debt repayment plan. However, the payment plan will almost always be better than what the payments are now, it gives you a certain date at which time everything will be paid off, and it ceases aggressive and sometimes harassing collection actions.
For more information or to schedule an appointment with an experienced South Carolina lawyer regarding a discharge or reorganization of your credit card debt through bankruptcy, please contact us.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.