Reduce Your Credit Card Debt…
When someone hears “credit card debt”, they may think of a dark financial cloud looming above them, or they may imagine cutting up their credit cards with a pair of scissors. When they hear “credit card debt and bankruptcy” they may think of a fresh financial start, or like the weight of the world is lifted. Bankruptcy can do a lot for someone with excessive credit card debt. If you’re eligible, filing a Chapter 7 Bankruptcy can completely eliminate your credit card bills. But if the Bankruptcy Means Test doesn’t allow you to file for Chapter 7, but provides that you must file a Chapter 13 Bankruptcy, it is still possible to eliminate a significant amount of your credit card debt by reducing the amount you need to repay.
Chapter 13 Bankruptcy can reduce your Credit Card Debt to pennies on the dollar…
Credit Card Debt, along with the debts of other unsecured creditors, like medical bills, payday loans, and utility companies can be completely eliminated in a Chapter 7 Bankruptcy. If you file a Chapter 13 Bankruptcy, unsecured debts aren’t entirely eliminated. Instead, they are paid back on terms based on your disposable income. If your disposable income dictates that they are to receive 10 cents on the dollar, that’s what they’ll have to accept. So it’s possible to owe $10,000.00 in credit card debt and repay only $1,000.00 over 3 to 5 years without interest. If you do the math, you can see the benefit a Chapter 13 Bankruptcy can have on reducing credit card debt. If you owe $50,000.00 or $60,000.00 in credit card debt but only have to pay back $5,000.00 or $6,000.00, or even $8,000.00 or $10,000.00 over 3 to 5 years without interest, that’s a significant difference. The majority of people’s credit card interest rates alone would equal or double the minimum amount to be repaid in Chapter 13 plan over 3 to 5 years.
In most all Chapter 13 Bankruptcy cases, your credit card debts and other unsecured creditors do not receive any interest on the debts they are owed. You repay the debt without interest over 3 to 5 years. You only have to pay the amount you owe on the credit cards and other unsecured debts on the date you filed your bankruptcy.
Many people file Chapter 13 Bankruptcy to stop foreclosure, stop repossession, or stop a lawsuit. When you have a pending credit card lawsuit, you can immediately stop the lawsuit by filing Chapter 13 Bankruptcy, but you don’t have to wait until you’re facing such a legal proceeding to file Chapter 13 Bankruptcy. You may consider filing Chapter 13 Bankruptcy to simply reduce or reorganize your credit card debt.
If you need debt relief from your credit cards, and the bankruptcy means test determines you aren’t eligible to file for a Chapter 7 Bankruptcy, Chapter 13 Bankruptcy can be the debt relief option you have been looking for. Chapter 13 Bankruptcy can help to consolidate your debts and repay those debts back over a period of time on a payment plan you can afford based on your disposable income and not what the credit card collector demands you pay.
If you have questions about Credit Cards and Chapter 13 Bankruptcy or questions about Bankruptcy & Credit Card Debt, please contact us to discuss your debt relief options. If you live in Austin, Houston, Dallas, Waco, San Marcos, or San Antonio, and are interested in filing for Chapter 13 Bankruptcy to reduce your credit card debt, contact the Houston Bankruptcy Attorneys at The Law Offices of R.J.Atkinson for a free bankruptcy evaluation and a free bankruptcy means test. Every case is different, so every case should be evaluated on a case by case basis, but whatever the case is, and whatever chapter of bankruptcy you may decide to file, bankruptcy puts you back in control of your finances on your terms. Don’t waste your life drowning in credit card debt, get a fresh start today…
Reduce Your Credit Card Debts Today… Chapter 13 Bankruptcy May Be A Solution…
Contact Houston Bankruptcy Attorney R.J.Atkinson: 713-862-1700
