Credit Card Debt

Filing a “Chapter 7” bankruptcy, also known as a “straight bankruptcy” or a “liquidation bankruptcy” will allow you to walk away from and avoid paying many (if not most) of your unsecured, unmanageable debts including your outstanding credit card bills — even if the credit card company already sued you and obtained a judgment.

Upon successful completion of a Chapter 7 case (which usually takes 3 – 4 months) all of credit card debt (including as well as other “unsecured” debt such as medical bills, outstanding personal loans, past due utility payments, etc.) will be discharged.  This means that you can walk away from these bills and never have to worry about them again.  No one is allowed to ever call you, contact you or sue you and, if they try, you can sue them and collect money from them.

In fact, the minute you file your bankruptcy case, all of your creditors must immediately stop trying to collect from you — even if they don’t yet know that you filed.  This means that the collection calls and threats have to stop and that no one can sue you or continue a civil lawsuit against you.  If any of creditors ignore the bankruptcy stay, you can sue them and collect money.

This also means that existing wage garnishments and bank garnishments against you must stop and, if a creditor has garnished your wages or your bank account within a short time prior to you filing your Chapter 7 petition, the creditor will have to return the money to you.

Another benefit of filing a Chapter 7 is that, unlike a “debt settlement” or “debt negotiation” — where you settle with a creditor for less than the total amount owed and then have to pay income tax on the amount that is “charged off” or “forgiven” (after the creditor sends you a Form 1099 notifying the IRS of the “charge off”), you cannot be charged income tax on credit card debt that was discharged in bankruptcy.

While a Chapter 7 is not suitable for everyone, most people who file a Chapter 7 will be able to keep all of their property and benefit from the “fresh start” they get by legally avoiding a mountain of debt.

If you live in the Metro Detroit Area and want to get rid of all of your credit card (and other unsecured) debts that are threatening your financial future, please call us TODAY at 248-417-9800 or contact us online to set up an appointment for a FREE, no obligation, confidential consultation to discuss your financial situation, and get the process started by crafting a plan that reflects your specific financial goals.

Waiting is not going to make the problem go away — it will just make it worse!  That’s why we urge you to call us RIGHT NOW — so that you can get the “fresh start” that you deserve — as soon as possible.  Our phone lines are available 24 hours a day, so CALL US NOW at 248-417-9800.  We look forward to hearing from you!