You can eliminate credit card debt with Chapter 13 bankruptcy! Chapter 13 is normally used to repay debts over an extended period without having to sacrifice the home, car, and other property. Several different types of debt including excessive credit card spending can be included in a Chapter 13 bankruptcy repayment plan. For someone who has assets and uses a credit card, Chapter 13 bankruptcy may be a solution when credit card charges get out of control.
When you need to save your property and eliminate debt, there is really no better method than Chapter 13 bankruptcy! Our team of bankruptcy experts knows exactly how to eliminate credit card debt! Contact us right now for a free consultation.
Chapter 13 Bankruptcy Can Eliminate Credit Card Debt!
Chapter 7 bankruptcy is typically used to wipe out credit card debt rather than repaying it. However, filers must meet an income test and may be required to surrender assets to be sold by the bankruptcy trustee. This type of bankruptcy may not be appealing or available to homeowners who earn a steady income and wish to retain their properties. For them, Chapter 13 is usually a better option because it gets debt under control without forfeiting the home. With Chapter 13 bankruptcy you can eliminate credit card debt and save your home!
Even if credit card spending is not excessive, credit card interest rates can make repayment unaffordable over time. Interest compounds each month, driving the credit card balance higher. When the account holder makes a payment, more of this money must be applied toward interest, making it difficult to reduce the principal balance that would decrease the interest charges.
Chapter 13 Can End the Vicious Cycle of Credit Card Debt!
To get out of this vicious cycle, some people file for Chapter 13 bankruptcy. They combine all qualifying debts into a repayment plan. As they make monthly payments on this plan over three to five years, the debt balance decreases. Once the repayment plan is completed, the bankruptcy is discharged and any remaining balances for covered debts are wiped away. Creditors may agree to reduced repayments because they would rather receive a portion of the balance than nothing.
An attorney can help an individual with credit card debt determine whether Chapter 13 is the best option. If the individual owns a home that is at risk of foreclosure, Chapter 13 can stop this process in its tracks and allow the homeowner to catch up with past-due mortgage payments through the bankruptcy repayment plan. It also allows you to eliminate credit card at the same time! Within a maximum of five years, the filer will be debt-free and ready to start a new life.
Debt from credit card spending is very common in America. With hundreds of millions of credit cards in circulation, the chance of overspending is great but there are solutions. For people with this and other types of debt, filing for Chapter 13 bankruptcy can prevent credit card default and protect property from foreclosure. Speaking with an expert bankruptcy lawyer is your first step to eliminating credit card debt and saving your property!