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.