Gwinnett County Debt Settlement Lawyer
The Credit Card Pit
What may have begun as a few extravagant purchases or as a means of making ends meet when you are in between jobs has resulted in maxed out credit cards and several thousands of dollars worth of debt. You make some monthly payments but soon realize that you cannot even make the minimum payment requirements. All the while you watch the debt increase and wonder what can be done about it.
To find out how filing for bankruptcy can help you clear up or reduce unsecured debt contact the firm of George R. Belche, Attorney at Law in Lawrenceville, Georgia.
What is Unsecured Debt?
Unsecured debt refers to debt for which there is no collateral. This includes debt on credit cards or store charge cards. The most important aspect of unsecured debt for those considering bankruptcy is the fact that it is fully dischargeable.
Will Chapter 7 Eliminate All My Credit Card Debt?
Chapter 7 or liquidation bankruptcy can eliminate much if not all of your credit card debt. Our clients commonly eliminate between $10,000 and $50,000 in credit card balances. If you do not qualify for Chapter 7, you may be able to pay back a portion of your debt by filing for Chapter 13.
One of my clients had run up nearly $300,000 in credit card debt. This person ran a small business and was using credit cards to keep the business afloat. After filing for Chapter 13, most of the unsecured debt was discharged. My client only had to pay back about 30% of the credit card debt. The rest was forgiven after a 60-month period.
The Presumption Period
When you have filed a bankruptcy petition, you cannot continue to run up credit cards. Any charges to your card within 90 days of filing or any cash advances within 120 days of filing may disqualify you from obtaining bankruptcy protection.
It is also important to know that your credit card company has the right to seek to have the charges declared non-dischargeable. This would occur if they brought about a fraud claim, stating that you intentionally planned on filing for bankruptcy or falsified information on your credit application.
In either case, it is important to have an experience bankruptcy lawyer on your side to provide effective legal support.
Get out from under the weight of credit card debt. At the firm of George R. Belche, Attorney at Law, we have been helping clients file for bankruptcy for 15 years. We look forward to helping you through the bankruptcy process from beginning to end. Contact us today for a free initial consultation.
"We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code."