BANKRUPTCY UPDATES

• Taking Your Credit Score from Bankrupt to Perfect 10 (May 21, 2012)
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• 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)
• Nassau Broadcasting Sells its Assets in Bankruptcy Court (May 22, 2012)

Credit Card Debt Law

In the past few decades, credit card debt has become a ubiquitous feature of American life. As a result, consumers today have totaled billions of dollars in credit card debt, which has had positive and negative consequences.

The bad news, of course, is the high amount of debt. However, the good news is that all of this debt has prompted Congress to build a robust system of credit card debt laws that protect struggling consumers.

Personal bankruptcy is a potentially powerful option to reduce credit card debt. To determine whether filing for personal bankruptcy could be a wise choice for you, complete the form below to arrange a free, no-obligation consultation with a bankruptcy attorney.

Eliminating Credit Card Debt

Bankruptcy laws allow people to reduce their unsecured debts, including credit card debt. Here's how bankruptcy law could help reduce credit card debt:

• Typically, bankruptcy law treats credit card debt as unsecured debt. Basically, this means that a lender does not have a lien on any of the bankruptcy filer's property and cannot take any of the filer's belongings (other than money) if they fail to pay your bills.
• Since bankruptcy is expressly designed to eliminate unsecured debt, it offers a solid strategy to reduce credit card debt.
• Under Chapter 7 bankruptcy, credit card debt may be completely discharged depending on the case, leaving no legal obligation to repay it after bankruptcy.
• Under Chapter 13 bankruptcy, a portion of credit card debt must be repaid. Chapter 13 creates a structured repayment plan over three-to-five years, and any unsecured debt left over after this period is discharged.

If you're overwhelmed by credit card debt, you can explore bankruptcy and talk to a local lawyer about your options.

Reducing Debt Through Personal Bankruptcy

As mentioned above, there are two main types of personal bankruptcy that may allow you to reduce your credit card debt. These are Chapter 7 and Chapter 13 bankruptcy.

Chapter 7 bankruptcy is designed for people who have relatively limited income and assets. It may allow filers to discharge some or all of their unsecured debts, including unpaid credit card bills.

On the other hand, Chapter 13 bankruptcy is generally better suited for people who have steady incomes or are at risk of losing valuable property. Under this form of bankruptcy, you are allowed to reorganize your debts in a manner that allows you to pay them off at a more reasonable pace and make payments to the bankruptcy trustee, rather than to each creditor.

To learn more about the relationship between credit card debt laws in your state and personal bankruptcy, connect with a local bankruptcy lawyer today. Simply fill out the free case review form below to get started.