American Express Credit Card Debt Relief
For many Americans, the need for credit card debt relief is urgent and intense. If you are one of the millions of Americans with credit card debt and you're looking for a way to ease that burden, you may have considered filing for bankruptcy.
Like most other credit card issuers, American Express can offer consumers a convenient way to purchase items and build credit - but an American Express card can also contribute to unmanageable debt.
If you're struggling to pay your credit card bills this month, you can get help. To speak with a lawyer today about whether a bankruptcy case might help you find some American Express credit card debt relief, please fill out this form and arrange a free, no-obligation consultation with a lawyer near you.
Can Bankruptcy Help with American Express Credit Card Debt?
Here's a look at how personal bankruptcy might affect your American Express credit card debt.
- The automatic stay: As soon as you file your bankruptcy case with the court, a legal protection called the automatic stay takes effect. This protection prohibits creditors from taking any collection actions, including phone calls, mailings, wage garnishment, repossession and even foreclosure. The automatic stay typically remains effective for the duration of your case, which means it can give you some relief from dealing with debt collectors.
- The debt discharge: If you file under Chapter 7 of the U.S. Bankruptcy Code, you essentially apply to have all of your eligible unsecured debts discharged by the court. "Unsecured" describes debt that is not attached to any property, and credit card debt is unsecured. In most cases, American Express credit card debt is eligible for discharge under Chapter 7.
- The repayment plan: If you file under Chapter 13 of the U.S. Bankruptcy Code, you essentially sign up for a repayment plan in which you catch up on what the court sees as your most important secured debts. Certain unsecured debts may also be included in the repayment plan, but many filers find that, at the end of their three- to five-year repayment period, their remaining unsecured debt is discharged by the court.
Which Type of Bankruptcy Is Best for Credit Card Debt Relief?
The answer to that question depends partly on your financial circumstances. Here's why:
- Chapter 7 bankruptcy: In order to qualify for Chapter 7, you must pass what’s called a means test. This test is a comparison of your household income to the median income in your state for a family your size. If your income is less than the median (or if you meet certain other standards), you'll likely be eligible for Chapter 7 protection.
- Chapter 13 bankruptcy: In order to file under Chapter 13, you have to have a dependable source of income. Otherwise, you risk missing payments in the repayment plan and thus losing the protection of the court.
Ask a Lawyer for More Details about Credit Card Debt Relief
Whether you have unmanageable bills from American Express or some other credit card issuer, you may benefit from speaking with a bankruptcy lawyer about your options for debt relief. If you'd like, you can arrange a free legal consultation with a lawyer practicing near you. Just fill out the simple case review form on this page to get started now.
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