Bankruptcy can wipe out your credit card debt
Chapter 7 and Chapter 13 bankruptcy can both assist in relieving credit card debt. However, be wary of filing for bankruptcy shortly after making any large credit card purchases as you may raise suspicion of fraud.
The purpose of Chapter 7 bankruptcy is to quickly cancel out all of your credit card debt. When you file for Chapter 7, you will go through a liquidation process, which is where any of your assets worth more than you owe on them that don’t qualify for exemptions, will be sold off to pay creditors. We are experts in protecting your assets so you don’t lose any in bankruptcy.
Chapter 7 bankruptcy will discharge your credit card debt, which means that you will not have to make any more payments on it.
If you file for Chapter 13 bankruptcy, instead of liquidating your assets you will enter into a three to five year repayment plan to pay off your debts. Chapter 13 bankruptcy requires that you have a steady income, as you will basically be reorganizing your finances to pay off your debts. In many cases, however, you will pay little to none of your credit card debts and your attorney will help calculate a payment that you can afford.