Can I Get Rid of Credit Card Debt by Filing for Bankruptcy? 

 Posted on April 03, 2024 in Bankruptcy

Debt can be one of the most stressful problems in a person's life. People who owe a lot of money often feel as though they are stuck in a revolving cycle of debt, fines, and fees that they can never get out of. Credit card debt, in particular, can be very difficult to pay back because interest rates are so high, and penalties and fees add up quickly.

If this sounds familiar to you, bankruptcy may be just what you need. Bankruptcy is designed to help people get out from underneath major debt and get on with their lives. Although bankruptcy is not a magic solution to every financial problem, it can make managing your finances much more accessible, allowing you to pursue the future you want. A knowledgeable, understanding North Carolina bankruptcy attorney can help you understand the benefits bankruptcy could provide.

Does Filing for Bankruptcy Automatically Get Rid of All My Credit Card Debt?

Many people with a lot of credit card debt wonder if filing for bankruptcy will help them eliminate all their debt. Whether or not bankruptcy erases all credit card debt depends on several factors.

The first thing you must discuss with your bankruptcy attorney is whether you have assets you want to keep, like a car or a house. You will also need to let your attorney know exactly how much money you make and how much you owe - not just to credit card companies. Chapter 7 bankruptcy is typically a better option for people who do not make enough money to pay back the money they owe and often ends with all credit card debt discharged. In contrast, Chapter 13 bankruptcy is usually a better choice for people with a regular income who want to keep certain assets. Your attorney will help you decide which type of bankruptcy makes the most sense.

How Long Does it Take to File for Bankruptcy? 

Because there is more than one type of bankruptcy and everybody's situation is different, the time it will take for you to complete the bankruptcy process is not possible to predict precisely. Chapter 7 bankruptcy typically takes about four months. Chapter 13 bankruptcy can take three to five years, depending on how much you owe and the payment plan you set up with the bankruptcy court.

Certain kinds of debt, like student loan debt and child support payments, are difficult to discharge through bankruptcy or cannot be discharged at all. Other options may be available to help people catch up on or reduce these payments, but it is important to know that if you have many kinds of debt, bankruptcy may be just one of the options you need to pursue.

Contact a Charlotte, NC Bankruptcy Lawyer

Feeling overwhelmed by credit card debt can make it hard to organize your finances and plan for the future, but it does not have to be this way forever. You can put yourself on a path to a better financial future by taking advantage of bankruptcy's flexibility and freedom. Call 704-256-7766 today to schedule a complimentary consultation with a Concord, NC bankruptcy attorney. At Blossom Law PLLC, we never make our clients feel judged and are here to help each client find the best solution for his or her situation. Call now.