Credit Card Debt in Kent
When it comes to eliminating credit card debt, bankruptcy is without equal as a financial tool. Have you ever wondered what your life would be like if you NEVER had to pay another credit card bill? If you qualify, bankruptcy makes this happen. All credit card debts are unsecured debts. All qualifying unsecured debts are completely wiped out in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you make one monthly payment that you can afford and at the end of your plan, all remaining credit card debts are completely discharged.
Our Kent credit card bankruptcy attorneys want you to understand your legal rights when it comes credit cards and real debt relief. In our opinion, credit card debt consolidation companies often prey on people's desire to be a good person, and they often act as if filing for bankruptcy is some type of horrific thing almost as bad as committing a crime. Our bankruptcy lawyers want you to understand that this is complete hogwash.
Many debt consolidation companies, who often claim to be "non-profit" organizations" make their money off of the payments that you make. They get some kind of a percentage and call it an "administrative fee" or a even a "donation". In our opinion, most financial experts agree that if you can file for Chapter 7 bankruptcy and completely wipe out your credit card debts, this is almost always the best option.
It's true that once you file for bankruptcy, it will stay on your credit report for ten years. On the other hand, if you pursue the path of debt consolidation, the credit card companies will continue to report you as delinquent month after month, and, eventually charge off your remaining balance. Effectively, your credit will be destroyed by either path. But, with a Chapter 7 bankruptcy, you never have to pay back another dime. And, you can start rebuilding your credit immediately.
Here's an excellent article and fairly objective article describing credit counseling versus just filing for bankruptcy.
Stop struggling every month just to survive. Filing for bankruptcy will free up immediate cash flow every month. Are your minimum credit card payments barely making a dent in your balance? Are you buying necessities with credit cards so you can use your pay check to make a payment on the cards? Have you missed a payment and had your credit limit cut and your minimum payment go up? All these are signs that you are insolvent – unable to pay your debt. If that is the case, you may need to file a bankruptcy.
Credit card debts are easy to wipe out in a bankruptcy. You may try credit card counseling but often the consolidation plans offered hurt your credit score as much as a bankruptcy and in the end don’t work. Negotiating with credit card companies is difficult and it is unlikely that all your cards will accept negotiation. Many debt consolidators keep you in the dark about that.
It is very easy to get into too much credit card debt. The credit card companies entice you with promises of cash back, airline miles and other perks. They offer balance transfers at a low introductory rate and make it seem like the debt is manageable. Then they are aggressive with late fees, interest and changes to the terms of your contract.
It is easy to start relying on credit cards without realizing how bad the situation has gotten. The vast majority of people who file bankruptcy hate the idea of breaking a promise but bankruptcy is there for people who are simply unable to pay the debt in a reasonable amount of time.
Credit cards are almost always discharged, or wiped out. However, a credit card can sue you in bankruptcy court if they think you committed fraud – such as going on a shopping spree just before you file, knowing that you do not have to pay any of the charges back if you file a bankruptcy. These cases are hard to prove and creditors rarely file a suit, though it definitely happens. If you have just been making a few small charges for necessities and have a decent payment history, you have nothing to worry about. If you have made large purchases, especially for luxuries or cash advances, you will want to wait to file your case.
You can not pick and choose which credit cards to include in your bankruptcy. Even if you have a zero balance on a card, the credit card company will likely cancel the card. Count on only having a bank debit card for the convenience for a while after you file your case.