Credit Card Debt and Bankruptcy 

One of the leading causes for people filing bankruptcy is credit card debt. This is due in large part to the ridiculous interest rates and late fees that many banks charge. Often these charges are well in excess of 30 percent. If you have a credit card balance of $7,000 and are just making the minimum monthly payment, depending on your age, it might take your entire life before you pay if off! 

By filing Chapter 7 bankruptcy you can totally eliminate all of your credit card debt along with all of the interest and late fees. Chapter 7 will also stop lawsuits and wage garnishments from unpaid credit card debt. 

There might be reasons for not filing Chapter 7. If Chapter 7 is not an option, then Chapter 13 is a viable alternative. Chapter 13 (also known as Debtors Court), allows for a reasonable repayment plan that lasts between 36 and 60 months.  One of the unique things about Chapter 13 is that all credit card interest stops from accruing the moment the case is filed. So, if you are paying a high rate of interest, Chapter 13 could save thousands of dollars just in interest alone. It might also be possible to pay back a small percentage of the total amount that is owed. For example, let’s assume you have $20,000 in credit card debt. Depending on your income and living expenses, you might be able to pay back only $500 and satisfy the debt in full. 

Instead of dealing with soaring credit debt for the rest of your life, you might be able to completely eliminate it with Chapter 7, or pay back pennies on the dollar and be completely debt free in just 36 to 60 months by filing Chapter 13. To find out more, please call attorney Josh J. Mitchell with the law firm of Bouloukos, Oglesby and Mitchell.