Some Debts Are Bigger Than Others – How Is Your Credit Card Debt?
Credit card debt is one of the biggest worries in most people’s minds. It can become overwhelming and out of control very quickly due to high interest rates and stiff late-payment and over-the-limit penalties. In fact, credit card debt is sometimes impossible to overcome without the help of bankruptcy. This is especially true if you or your family members have suffered a job loss, pay cut or medical problem.
Many people who are in debt mistakenly try to pay off “unsecured” credit card debts using money that would normally go toward a “secured” debt such as a mortgage or car payment. This only worsens the problem with time. By paying off one type of debt, they fall behind on the other, and risk both financial ruin and the loss of an important asset. I am April Perry Randle, a bankruptcy lawyer based in Chattanooga, Tennessee. I help people resolve their debt issues through personal bankruptcy. For a free consultation, call me today at 423-464-6908.
Eliminating Unsecured Debt Through Bankruptcy
Credit card debt is “unsecured,” meaning it is not attached to property that can be repossessed if payments are not made. Sometimes, creditors assert that their debt is secured by household items or other property; however, many times these debts are actually unsecured. Make sure to discuss all your debt during your office appointment so that you can be advised whether the debt will be discharged.
Under Chapter 7 bankruptcy law, almost all unsecured debt can be discharged. Other unsecured debt includes medical bills, personal bank loans or signature loans, finance company loans, payday advances and loans from family or friends.
If you choose to file for Chapter 13 bankruptcy, you can repay your debts over three to five years under a repayment plan. After you complete your payments under the court-approved plan, regardless of whether your unsecured creditors are paid in full, any remaining balance will be discharged forever.
Are You Struggling With Credit Card Bills? Contact Me For A Consultation.
Bankruptcy laws are complicated. By hiring an experienced attorney, you can erase your credit card debts and concentrate on building a new financial future. For more information, contact me online or at 423-464-6908.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.