How to Eliminate Credit Card Debt
Many individuals and families file for bankruptcy to eliminate credit card debts. With a few exceptions including fraud or luxury purchases, credit card debt will be discharged when the bankruptcy is completed. In fact, once the bankruptcy is initially filed all collection activities must cease. That means no lawsuits, liens, reporting the debt to a credit reporting bureau or, seizing your property or income. Most individuals who simply want to eliminate Credit Card debt file for a Chapter 7 Bankruptcy if they qualify (read more about Chapter 7).
The creditors will be listed on the bankruptcy schedules and will be notified by the bankruptcy court of your filing. Also, our office will make sure that the collection companies are also listed. Credit accounts are many times transferred through several collection agencies and it may be difficult to ascertain who has the account. In most circumstances your credit card liability will be discharged meaning eliminated at the end of the bankruptcy procedure.
There are many strict regulations regarding collection of unsecured credit card debt and most lenders understand that these are strict and straight forward federal laws. Our office will work with you and the creditors to make sure the debt is eliminated at the end of the procedure. While Chapter 7 bankruptcy will completely eliminate your credit card debt, Chapter 13 bankruptcy is an option for indivuduals who do not qualify for Chapter 7 or have a home they are trying to save from forclosure. In a Chapter 13 bankruptcy your debts will be repaid but in most circumstances at a fraction of what you owe and through a period of 3 to 5 years. (read more about Chapter 13)
Credit Card Law Suits
If you have a pending lawsuit from a credit card company the bankruptcy will stop the lawsuit from continuing. The attorney for the creditor, the creditor themselves and the court in which the law suit is being held will all have notice of bankruptcy. And under federal law the collection law suit can not continue.
Credit Card Judgments
Even if you have a judgment from a credit card company, your bankruptcy will eliminate any collection such as a wage garnsihment and also eliminate the debt.
If Bankruptcy is not an option we can help you attempt to settle your accounts at a fraction of the cost.
Call the Law Office of Rami N. Nabi today to see how we can help you eliminate your credit card debt.