BANKRUPTCY UPDATES

• Book Publisher Houghton Mifflin Harcourt Files for Bankruptcy (May 17, 2012)
• Las Vegas Tycoon Lists $500 Million in Debts in Bankruptcy Filing (May 15, 2012)
• Luxury Boat Builder Files for Bankruptcy in Wake of Rising Debts (May 16, 2012)
• Television Service Provider Capitol Infrastructure Files Bankruptcy (May 10, 2012)
• Potential ResCap Bankruptcy Filing Spells Trouble for Ally Financial (May 14, 2012)

Credit Card Debt Lawsuit

If you've been hit with a credit card debt lawsuit, it may have been a wake-up call that your finances are no longer manageable. But how should you proceed? Is there any way to save your finances? Is there any way to stop the lawsuit?

You may be surprised to learn that bankruptcy may help you get back on top of your finances and end your creditor's claims against you.

If you're ready to ask these and other questions directly to a bankruptcy lawyer, simply fill out the case review form below to connect with a lawyer today for a free case evaluation.

Bankruptcy & Credit Card Debt Lawsuits

The good news if you're facing charges from a credit card company is that filing for bankruptcy may help ease your financial woes and offer you a form of debt relief assistance. Here's how.

• The automatic stay: This protection takes effect as soon as you file your petition with the bankruptcy court. The automatic stay prevents collection of any kind, typically for the duration of your bankruptcy case, including foreclosure, repossession, wage garnishment and debt-related lawsuits.
• The repayment plan: If you choose to file under Chapter 13 of the U.S. Bankruptcy Code, your bankruptcy case will remain active for three to five years, during which time you’ll make monthly payments according to a repayment plan. The money you pay will go to your creditors and can allow you to catch up on your past-due debts (while staying current on other debts).
• Straight bankruptcy: If you are eligible and file under Chapter 7 of the Bankruptcy Code, you could get a debt discharge in as little as four to six months. Chapter 7 bankruptcy works differently than Chapter 13: filers are not required to make repayments to creditors. Instead, the court offers them a full discharge of some or all of their eligible unsecured debts.
• The debt discharge: At the end of either a Chapter 7 or Chapter 13 case, certain debts may be discharged. Debts are ranked according to their payment priority, with top priority given to secured debts (those attached to property), student loans, alimony, child support, criminal fines and tax debts. High-priority debts cannot be discharged in bankruptcy, but low priority debts (including credit card debt) are often forgiven at the end a successful bankruptcy case.

What Are the Limits on Credit Card Debt in Bankruptcy?

Though bankruptcy courts often discharge credit card debts, there are some restrictions on this practice. Credit card purchases of luxury goods made within 60 days of a bankruptcy filing or made after meeting with a bankruptcy lawyer are often non-dischargeable. However, if you are facing a lawsuit from a credit card company or debt collector, odds are the debt is old enough to be eligible for discharge in bankruptcy.

Where Can I Learn More about Credit Card Debt Lawsuits?

If you're interested in finding out whether filing for personal bankruptcy might be the solution you need for a credit card debt lawsuit, you can connect with a bankruptcy lawyer practicing in your area. During a free consultation with your lawyer, you can ask questions specific to your circumstances and find out more about how bankruptcy might be able to help you. Simply fill out the case review form below to get stared now.