Credit cards can add up fast — potentially leaving thousands of dollars in credit card debt behind you. Monthly payments that just pay the minimum will take decades to pay off and end up significantly costing you in interest charges alone. We know how you feel because we’ve been down this road before, but we can help you eliminate that debt once and for all. A free evaluation with our experts can help you break free from credit card debt. Not only will we help you resolve your credit card debt anxiety and concerns, but we will also teach you how to navigate the path to determine the best plan for your situation.
What Kind Of Debt Do I Have?
There are two main types of debt: secured and unsecured. When it comes to loans or a line of credit, a lender typical evaluates the consumer’s creditworthiness and credit history before distributing the funds. In most cases, unsecured debt is often due to credit card usage, but through bankruptcy, our team of experts can erase unsecured debt with the snap of your fingers.
What Is Secured Debt?
Secured debt is a tangible asset like a car, a home mortgage, or a big appliance — something that can be repossessed or taken away from you if you fail to make the payments for the item. Because an asset can be held as collateral if payments aren’t made, it’s a fairly simple process for a borrower to get a secured loan or line of credit with a somewhat lower interest rate. Secured debt is guaranteed by an asset, so banks and lenders have a failsafe if you default on payments.
What Is Unsecured Debt?
Unsecured debt is the opposite of secured debt and doesn’t require much security. Lenders largely issue funds in an unsecured personal loan or credit based on the borrower’s creditworthiness and promise to repay — along these lines, interest rates are usually high to justify the lender’s risk in giving out funds. Unsecured debt is usually accrued after a the borrower has signed a contract with the lender. This type of unsecured debt would include credit card charges that you have made for ordering a pizza, paying for a cab, or purchasing smaller items that cannot be repossessed to go towards the amount of debt. If you are unable to pay back your unsecured debt, a bank or credit company can possibly put a lien on your assets, garnish your wages, or take other forms of legal action.
How Can Bankruptcy Eliminate My Credit Card Debt?
Whether your debt is secured or unsecured, you can still find a way out of the mounting collections calls and letters if your credit card debt is unmanageable. Bankruptcy can be the right option to get you on the road to recovery — for your sanity and for your credit score. Declaring bankruptcy for credit card debt and other unsecured debt and starting new on a clean slate can be achieved by filing for either Chapter 7 or Chapter 13 bankruptcy. Our experts can determine which option makes the most sense depending on your financial situation and future prospects. We will guide you throughout the entire process in a way that is easy to understand and gives you peace of mind.
What’s The Difference Between Chapter 7 And Chapter 13 Bankruptcy?
Chapter 7 Bankruptcy
Chapter 7 is a liquidation bankruptcy option that is designed to wipe out your general unsecured debts like credit cards and medical bills. To qualify for Chapter 7 bankruptcy, you must have little or no disposable income with minimal tangible assets that could potentially be seized or repossessed. When our team files for Chapter 7 bankruptcy on your behalf, we will erase your unsecured debt and stop the collections calls and wage garnishments so that you can live your life hassle-free from debt collectors.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a reorganization structure for debt that essentially sets up a repayment plan for individuals who have a regular source of income. Through this option, you are typically allowed to keep your assets while you pay back the debt over a period of 3-5 years through a plan that is dependent on your income and general financial situation. However, our team is full of experts at limiting the repayment amount to the bare minimum. When filing for Chapter 13 bankruptcy, we are usually able to erase nearly 90% of the credit card debt owed — saving you tens of thousands of dollars in the long-run.
Resolve Your Credit Card Debt With Our Services
Our team will eliminate much of your credit card debt when we file for either Chapter 7 or Chapter 13 bankruptcy on your behalf. There is no reason to suffer any longer from the pain and abuse that credit card companies and debt collectors can cause. Our bankruptcy experts are here to offer you a free consultation to go over your financial concerns and to find out how we can help you get started on the road to recovery from credit card debt.