What happens to my credit card debts and bills when I file for bankruptcy?
Are you struggling from paycheck to paycheck? Have you been trying your best month after month to pay down your credit card debt, only to have it keep accumulating thanks to outrageous interest interest rates and punishing fees? Every wonder what your life might be like if you NEVER had to pay another dime to these predatory lenders?
Our Auburn bankruptcy attorneys understand that revolving credit card bills often make you feel as though you are on an endless hamster wheel, seemingly always running faster and faster, spinning and spinning, but never getting anywhere. Well, we have good news. If you are able to qualify for bankruptcy protection, we have a solution that will wipe out all of your credit card debts forever.
It may seem like we are offering some kind of a virtual reality fantasy solution that is more fiction than fact. But, it's absolutely the truth. This is the true and awesome financial power of our Federal and Washington State bankruptcy laws on full display. No other financial solution on the planet comes close to providing this kind of protection and relief.
The credit card companies and those savage debt collectors that do their dirty work try their best to make you believe that filing for bankruptcy somehow equates to failing in life. They want you to think and to believe that even thinking about calling our bankruptcy legal services offices means that you are a bad person and a deadbeat.
Our Auburn bankruptcy lawyers want you to understand that nothing could be further from the truth. Here's the straight up truth and what you really need to know about credit card debts and bankruptcy. Our bankruptcy laws were specifically enacted by Congress and the Washington State Legislature in order to ensure that good people aren't trapped in an endless and ever-increasing debt cycle for the rest of their life.
Why would the Bankruptcy Code allow me to simply wipe out and eliminate all of my credit card debts when I might be able to pay something on them?When citizens are doing everything they can but keep falling further and further behind with no reasonable hope of ever turning the corner, they often become a drag on the economy and require more and more social services. More importantly, they cease being productive consumers of goods and services. Your debtors want you to feel ashamed at your situation. We want you to understand that there is no shame in seeking bankruptcy protection. None! Filing for bankruptcy isn't a failure. It's a new beginning.
If you qualify, filing for Chapter 7 or Chapter 13 bankruptcy debt relief is your legal right. More importantly, many of our clients find themselves in financial distress through no real fault on their own. For many of our clients, circumstances just pile up against them and then conspire together to create a kind of perfect financial storm, often from which there's no recovery. In which case, bankruptcy is almost always the best option.
Our Auburn bankruptcy attorneys are here to help you get the fresh financial start you deserve. And, we want you to understand that there is absolutely no shame in filing for bankruptcy. We will never judge you, and you shouldn't be too hard on yourself either. If you can qualify, bankruptcy is probably your best option, especially if you are drowning in credit card debt. The good thing about filing for bankruptcy is that it will also stop all of that nasty creditor and debt collection harassment that is probably making your life a living nightmare 24/7.
Stop all creditor harassment immediately! Let our King County bankruptcy lawyers get those nasty bill collectors off your back once and for all!As soon as you file a bankruptcy, credit card companies have to stop collecting from you. It doesn’t matter if you are current with your payments, you are falling behind, or you are in the middle of a garnishment. And, at the end of your bankruptcy, all of your credit card debts are wiped out forever. It's kind of hard to believe, right? But, it's absolutely true. The minute you receive your discharge, 100% of all Visa, MasterCard, American Express, and every other type of credit card debt is immediately and forever wiped.
You have to include all your credit cards in bankruptcy. You can not pick and choose which credit cards you want to keep and which ones you want to wipe out. Even if you have a card that is paid off and you do not list it on your bankruptcy, the credit card company will find out that you filed and may cancel your account. If your card is completely paid off, you can try to keep it. And, some credit card companies may let you do so. But, it's up to them. And, in most cases, after your bankruptcy is over, you will probably have to use a bank debit card for the convenience credit cards provide.
At some point after your discharge, you will be able to apply for new credit cards, if you feel that is necessary. For many of our clients, this happens right after they get their final discharge. Credit card companies know that you will not be able to file for bankruptcy again anytime soon. So, you actually instantly become a better risk.
Of course, the cards they offer have low limits and high interest rates. But, it's certainly not like you will never be able to get a credit card again if you file for bankruptcy. The key is to use your new credit responsibility. And, if you have any questions on this front, our Auburn bankruptcy lawyers will be happy to explain the best practices for future use of credit cards once your bankruptcy is completed.
Is there any way that my credit card debts will not be fully discharged and wiped out?A credit card debt can be excepted from the discharge if the credit card company is able to prove that you committed fraud when you made a charge. To prove fraud in bankruptcy, the credit card company must file a separate lawsuit in the bankruptcy court called an “adversary proceeding”. Fraud is proven by showing that you never intended to pay the debt when you made a charge.
The bankruptcy judge looks at factors like how much the charge was, how soon it was made before filing bankruptcy, whether the charges were for luxuries or cash advances, whether any payments were made after the charges, whether you had talked to a bankruptcy attorney before making the charge and your overall financial condition leading up to filing your case.
If you made a few little charges for necessities before filing, that should not be a problem. However, if you made large charges in the last few months, even if you had no idea you would file bankruptcy, you may want to wait a while to file your case. You may want to make a few small payments as well. The issue of credit card fraud and bankruptcy can be confusing, and every case is unique. In general, you probably have nothing to worry about. But, if you have questions about whether or not 100% of your credit card debts can be wiped out in bankruptcy, we strongly encourage you to call our offices and speak with one of our Auburn bankruptcy professionals.