Bankruptcy as an Option for Credit Card Debt Relief

Bankruptcy as an Option for Credit Card Debt Relief

Consumers typically go out of their way to avoid getting in trouble financially. Unfortunately, sometimes factors beyond their control create a situation where a consumer can find they need credit card debt relief. Whether it is job loss, divorce or illness, sometimes we fall behind paying bills and cannot seem to dig our way out.

Bankruptcy as an option

In general, we feel if we run up a debt we are morally obligated to repay that debt. However, when we fall so far behind in our bills that there is no way to save our homes, make minimum payments on our credit cards or pay sky high medical bills, bankruptcy may be the only option available.

Past-due accounts and bill collectors

Chances are if you are having problems dealing with basic expenses, you are also getting regular telephone calls from bill collectors. One advantage of filing for bankruptcy is your creditors will have to stop collection efforts pending the outcome of your bankruptcy petition.

Bankruptcy options

Consumers will be able to file for protection under Chapter 7 or Chapter 13.

  • Chapter 7 – Here, the consumer will receive a discharge of most, if not all their debts. The consumer must meet certain income requirements based on mean income in the Commonwealth of Massachusetts
  • Chapter 13 - commonly called "wage-earners" bankruptcy, the consumer agrees to a repayment agreement over a specific period of time based not upon debt, but rather the income and expenses the consumer has.

Consumers who are swimming in debt do have options. Do not hesitate to seek debt relief using the bankruptcy protection laws to help you get a fresh financial start. If you are uncertain as to whether bankruptcy is the right choice for you, contact the Law Office of Robert Kovacs for help. We will review your current financial circumstances and help you determine which Chapter of the bankruptcy code is right for you and help you through the entire process.