FAQs About Filing for Bankruptcy to Clear Credit-Card Debts

Credit-card debts can be overwhelming and can leave you struggling to make ends meet. Fortunately for most people, filing for bankruptcy can lead to relief from those debts and a fresh start. If you have credit-card debts and are considering bankruptcy, here is what you need to know. 

Should You File?

Bankruptcy can help get rid of some or all your credit-card debts, but it is important that you choose the right time to file. When you should file is dictated on whether or not the credit-card company is taking action, whether there is a possibility that you can pay the debts back, and your assets. 

If the credit-card companies are threatening to sue you, filing for bankruptcy can offer you protection from lawsuits. Even if your bankruptcy is not granted by the court, you can get temporary relief from your debtors through the automatic stay that is placed when you file for bankruptcy. 

If you are able to pay back the credit-card debts within a reasonable period of time, filing for bankruptcy might not be the best option. Consolidating those debts or attempting to work out a payment plan with the creditors could help you clear the debts that you have. Your attorney can help you decide whether this is possible.

Depending on the type of bankruptcy you file, you could lose some of your assets to the court. If you have a significant amount of assets, such as in the form of cars and valuable art, and if you are worried these assets could be taken, carefully consider your bankruptcy options.

Are All Credit-Card Debts Discharged?

One of the misconceptions about bankruptcy is that it will get rid of all the debts that a person has. In some cases, this can be true. However, this is not true in every case. 

There are exceptions to which credit-card debts can be discharged. For instance, if you received cash advances over a certain dollar amount, it is possible that the court will not discharge those debts. Your attorney can help you review your advances to determine whether they exceed the amount allowed by the court. 

The court might also refuse to discharge credit-card charges for luxury items that were purchased in the period leading up to the bankruptcy filing. Luxury items are those that are not necessarily considered to be needs. You might be required to submit proof of your purchases to have them considered for discharge. 

There are many other rules and regulations that dictate what can and cannot occur during a bankruptcy. Work with your bankruptcy attorney to ensure that you are aware of them and how they can impact your situation. 

About Me

My Real Life Crime Drama

I never even dreamed that I would be accused of a crime that I did not commit. I mean, stuff like that only happens on TV right? Well, at least that's what I thought until it actually happened to me. After being falsely identified by a witness, I found myself standing trial for a crime that I was truly innocent of. It was only with the help of my lawyer that I was able to prove my innocence and ultimately get back my good name. Watching my lawyer present my case to the jury, I must admit that I was impressed. It was in this moment that I knew just how special the legal system truly is. Today, I write this blog as a way of honoring the system that worked for me and to ensure that everyone has someplace to turn when dealing with legal issues of their own.