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Credit Card Debt Attorney in Michigan

What Are Your Options for Eliminating Credit Card Debt?

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.

Learn more about your options for resolving your credit card debt. Contact the Hensel Law Office, PLLC in Sterling, MI at (888) 258-0651 for a free consultation.

How Credit Card Debt is Treated in a Chapter 7 Bankruptcy

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.

The court can choose not to discharge these debts if:

  • You purchased luxury goods on a credit card - 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).
  • You used a credit card to take out a large cash advance - 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.

Will I Need to Repay Credit Card Debt in a Chapter 13 Bankruptcy?

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.

Are you struggling with credit card debt? Call today at (888) 258-0651 to schedule a meeting. Evening and weekend appointments are available.

Client Testimonials

  • I greatly appreciate your time and effort.

    “It was a great pleasure and relief working with you through that tough time. I greatly appreciate your time and effort on our case. I will gladly and confidently recommend you to anyone I know facing a tough financial time requiring your expertise.”

    Jay

  • Thank you very much for getting us through this very hard time in our lives.

    “I just wanted to thank you very much, for getting us through this very hard time in our lives. You did an excellent job. If anyone I know is in need of a lawyer, we will surely give them your name. Again thanks.”

    John and Linda

  • He is respectful and down to earth with his approach to very complicated legal matters.

    “Hensel Law Office has helped me during a very difficult time in my life. Tom has done a wonderful job with my Chapter 13 case. He always kept in touch with me and explained everything in terms I could understand. I would highly recommend Mr. Hensel to anyone who is facing any bankruptcy filing. He is respectful and down to earth with his approach to very complicated legal matters.”

    Sandra

  • We have and will continue to recommend you to others in need of a fresh start.

    “Dear Tom, my husband and I wanted to express our deepest thanks for the help you gave us during our embarrassing and stressful time. I was very impressed that you returned every phone call in a timely manner. You were able to explain exactly what was going to happen in words that "we" could understand. You answered every question we threw at you. The whole bankruptcy process from start to finish was complete in the time you told us it would take. Your professionalism yet friendliness made the whole experience for us almost enjoyable... almost! We have and will continue to recommend you to others in need of a fresh start.”

    Melissa

  • Utmost dedication and professionalism.

    “I chose to work with Tom Hensel after meeting with several big name firms in the area. Tom handled my unique situation with the utmost dedication and professionalism. The personal service I received from him made all the difference in my case. My only regret is that I didn't call him first.”

    Craig