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New Year, New Start: Erase Credit Card Debt with Chapter 7 Bankruptcy
Debt in and of itself can be daunting, but no form of debt is quite as common and relatable as credit card debt.
Additionally, if you’re in over your head in overdue credit card statements, you’re far from alone.
Luckily, by filing for bankruptcy — like Chapter 7 bankruptcy — you can find freedom and relief from credit harassment and the stress of those oft-used cards. Here’s what you need to know:
Bankruptcy Basics of Chapter 7
In simple terms, Chapter 7 bankruptcy is also known as “liquidation bankruptcy,” as it involves the potential liquidation of the filers’ available (non-exempt) assets to pay off debt. It is also far more common than many people realize.
“[Chapter 7] is available to qualified individuals who cannot make regular, monthly, payments toward their debts,” as reported by the Internal Revenue Service (IRS). “Chapter 7 provides relief to debtors regardless of the amount of debts owed or whether a debtor is solvent or insolvent.”
This process involves an appointed trustee who is responsible for converting the filer’s non-exempt assets. Once liquidated, these funds are then distributed among creditors.
Finally, Chapter 7 also features an automatic stay wherein debt collectors can no longer contact and harass the individual filer.
Calling on Chapter 7 for Your Credit Card
Chapter 7 may provide an individual with relief from their credit card debt, as this type of debt is eligible for discharge through bankruptcy.
Specifically, “a discharge releases individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor,” the US Courts explains. “Generally, excluding cases that are dismissed or converted, individual debtors receive a discharge in more than 99 percent of chapter 7 cases.”
According to Experian, a major credit reporting agency, “most forms of unsecured debt can be discharged, including credit card debt.”
Other forms of dischargeable debt will often include…
- Medical bills
- Utility bills
- Some tax debts
- And more.
Overcome Debt with Dolaghan Law
Regardless of whether Chapter 7 or Chapter 13 is your preference, one thing remains the same: Bankruptcy can help you regain control over your finances, thereby offering you the fresh start you’ve longed for.
What’s more, you’ll never have to face the process alone. Not when you contact Dolaghan Law to guide you through the filing process.
Dolaghan Law is available to empower you with the newfound freedom bankruptcy can grant. To learn more about bankruptcy or begin the filing process, simply contact Dolaghan Law today by calling (904) 354-4935!