What Happens to My Credit Card Debt if I File Bankruptcy?
Excessive credit card debt can cause anxiety and depression. Most people in excessive credit card debt got there because of emergency expenses. Perhaps there were unavoidable medical bills or car repairs. Chapter 7 and Chapter 13 bankruptcy can provide relief by erasing most types of credit card debt.
Chapter 7 and Bankruptcy
Chapter 7 is an option if you want to wipe out (discharge) all of your unsecured and non-priority debt. Unsecured debt means the debt isn’t backed by collateral. And non-priority debt is debt that courts consider the least important to pay should money become available.
Bankruptcy laws are often confusing. And filing bankruptcy without the legal guidance of a lawyer is risky. Virginia residents can contact a bankruptcy law firm in Henrico VA. Get help with your case, explore your options, and have legal representation in court.
Chapter 13 and Bankruptcy
Chapter 13 allows you to repay your debts in full or in part. The bankruptcy court will approve a repayment plan that gives you three to five years to repay your debts.
If you file Chapter 13, you’ll likely have to pay a small portion of your unsecured debt (which includes credit cards). At the end of your repayment period, any remaining credit card balances will get discharged.
Henrico bankruptcy lawyers at Canfield Wells LLP can help Virginia residents wanting to file bankruptcy. A bankruptcy lawyer can explain the procedure, help you complete the legal paperwork, and represent you in bankruptcy court.
There are some exceptions to debts you can’t discharge. Bankruptcy will not erase child support debt or taxes you owe. Credit card debt obtained by fraud is also non-dischargeable.
A bankruptcy law firm in Henrico VA can provide more information about how and why to file bankruptcy. The Henrico bankruptcy lawyers at Canfield Wells LLP are ready to help.