Michigan Credit Card Debt Relief Attorney
Explore Your Options for Credit Card Debt Elimination in Michigan
For millions of Americans, repaying credit card debt is an endless battle. If you too are struggling to keep your head above water, it is important to understand that you have options.
While filing for bankruptcy is an effective way to wipe out unmanageable debt, there are numerous other ways that you can regain control of your finances. For example, strict budgeting and strategic planning is a good way for you to start chipping away at your credit card debt.
If that is not enough, our lawyer may be able to assist you in negotiating a settlement with the bank or the issuer of your credit card. If you are really in over your head, however, you may want to consider filing for bankruptcy.
Discover Debt Resolution Strategies: Contact Hensel Law Office in Sterling, MI at (888) 258-0651 for a No-Cost Consultation.
Understanding Chapter 7 Bankruptcy and Credit Card Debt
If you are unable to get a handle on your credit card debt, filing for Chapter 7 may be your financial solution. Through this debt relief process, you would be able to discharge most, if not all, of your unsecured debt. This means you would be absolved of the responsibility to repay your overdue credit card bills once the process is over.
During Chapter 7 bankruptcy, your non-exempt assets would be liquidated and the proceeds would be used to repay your creditors in order of priority. Since credit card debt is low on the scale, it is unlikely the credit card company will be repaid at all.
Non-Dischargeable Credit Card Debts: Know the Exceptions
- Luxury Purchases and Bankruptcy - If you use a credit card to purchase "luxury goods" or services within 90 days of filing for bankruptcy ($650 or more), a judge can choose not to discharge the debt, as this could be seen as an attempt to defraud the court. However, this excludes any goods or services deemed necessary for the support of you and your dependents (i.e. food, gas, and clothing).
- Cash Advances Prior to Bankruptcy - If you use a credit card to take out a large cash advance within 70 days of filing for bankruptcy ($925 or more), the debt will be considered nondischargeable. It will not matter whether or not you used the money to purchase luxury items, as you will still need to show the court you intended to repay the debt when you incurred it.
Chapter 13 Bankruptcy: Repayment Plans and Credit Card Debt
Unlike Chapter 7 bankruptcy, Chapter 13 requires you to reorganize your debt and develop a suitable repayment plan to be executed over three to five years. You will be asked to repay creditors in order of priority. Therefore, whether or not you repay your credit card debt will depend on the type and amount of all other debts that you have incurred.
For example, you would first be required to repay all secured loans and priority unsecured debts before touching your credit card debt. If at this point you can afford to repay more of your debt, you will be required to do so.
Any unsecured debts not been repaid at the end of your bankruptcy will be discharged by the court.
Struggling with Credit Card Debt in Michigan? Call (888) 258-0651 for a Personalized Consultation. Evening and Weekend Appointments Available.