If you are overwhelmed with credit card debt that you are unable to pay off, you might be considering your options to achieve some financial relief. One of the options you are likely considering is bankruptcy. Depending on your specific circumstances, a Chapter 7 or Chapter 13 bankruptcy may result in a full or partial discharge of your credit card debt.
At the Law Office of Simon Goldenberg PLLC, we are committed to helping people get out of debt. If you are considering filing for bankruptcy, you should first schedule a consultation with an experienced debt relief attorney to review your options. Call us to learn if you qualify.
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Using a Chapter 7 Bankruptcy to Wipe Out Credit Card Debt
When you file for a Chapter 7 bankruptcy, you may be able to discharge most, if not all, of your unsecured debt. To accomplish this, you will have to give up nonexempt property, which the trustee will sell and distribute the proceeds to your creditors. Since credit card debt is typically unsecured debt, this option might be suitable for your situation. Our attorneys can help you protect your assets and apply the maximum exemptions permitted by law.
There are some exceptions that could prevent you from discharging all of your credit card debt:
- You were dishonest on a credit card application and it affected the credit card issuer’s decision to extend credit to you.
- More than $675 in luxury goods and services were charged 90 days before you chose to file for bankruptcy.
- You received a large cash advance from a creditor within 90 days of filing for bankruptcy.
Using a Chapter 13 Bankruptcy to Restructure Credit Card Debt
If you were to file a Chapter 13 bankruptcy, you would repay a portion of your debts through a repayment plan that would last anywhere from three to five years. Generally, when choosing this option, you would only have to pay off some of your unsecured debt based on how much disposable income you have. When the repayment period comes to an end, any balance you have remaining would be discharged.
This option is sometimes elected by debtors which have incomes that exceed the chapter 7 means-test, or that have unexemptable assets. Our attorneys can review your income and expenses and propose a chapter 13 repayments plan that fits your budget.
Contact a New York Bankruptcy Attorney for the Guidance You Need!
If you are considering filing for bankruptcy to obtain relief from overwhelming credit card debt you cannot pay off, you should first obtain skilled legal counsel to ensure you do not make any unnecessary mistakes that could jeopardize your efforts at a clean slate. At the Law Office of Simon Goldenberg, PLLC, our New York bankruptcy attorney will give you the knowledgeable advice you need, so you can take the proper steps toward a better and brighter financial future.
Take the first step toward debt relief and contact us today at (888) 301-0584 to schedule a complimentary case evaluation with our debt relief attorney.