Eliminating Card Debt By Using Bankruptcy System

Is your credit card debt so high that you’re unable to pay the debt off? If you answered yes, the worst thing you can do is struggle to get out of debt and paying it off. Today, you have the option to file for either Chapter 7 or Chapter 13 bankruptcy and totally get rid of those credit card debts.

The current debt system companies have set up makes it difficult to crawl out of the hole.  And, the reality behind it all is that people who are in debt are what credit card companies are often. That’s because you only pay the interest off.  With interest still accruing, you pay up to five times more than the actual debt was until you finally pay it off… if ever!

Don’t Keep Struggling With Your Debt, Start The Bankruptcy Process

If you’re tired of being hounded by creditors, bankruptcy is the surefire way to wipe out your credit card debt.  Keep in mind that bankruptcy won’t take care of all debt you owe:

•    Child support
•    Car
•    Home

However, it does get rid of all other kinds of credit card debt, depending on the kind of bankruptcy you decide to file for.

Should You File For Chapter 7 or Chapter 13 Bankruptcy Protection?

There are two kinds of bankruptcy you should consider when you want to eliminate your credit card debt:

•    Chapter 7
•    Chapter 13

Each one has their own positive and negative aspects. Therefore, you need to know what method would be ideal for your situation.

Chapter 7 Bankruptcy

When filing for Chapter 7 bankruptcy protection, nearly all unsecured, non-priority debt is eliminated. Unsecured debt is the kind of debt that has no property attached to it – car or house.  What are the types of unsecured debt?

•    Purchases
•    Utility bills
•    Medical bills
•    Payday loans

Chapter 7 will not eliminate child support obligations, some tax debts and your student loans. You may not get rid of debt that’s a result of credit card fraud.

When you eliminate the unsecured debt, you voluntarily give up the rest of your non-exempt property, selling it off and distributing it to lenders or letting your lenders have it so they can sell it. If you don’t have any non-exempt property, you simply have a clean slate.

Chapter 13 Bankruptcy

In this option, you pay back a minute percentage of the credit card debt based on your household’s disposable income. After this part is paid off, you’re free and clear of the rest of the debt.  Payments are set up over a period of three to five years, allowing you time to get on your feet and pay the debt off entirely.  With this bankruptcy protection, you’re allowed to keep nonexempt property.

Will Bankruptcy Stop Creditors From Harassing You

It doesn’t matter if you file for Chapter 7 or 13, your lenders and creditors will have to stop pursuing their collection efforts by way of an automatic stay. This stay keeps you from them suing you for filing for bankruptcy protection.