Filing Bankruptcy On Credit Cards
Credit card debt is an especially dangerous form of debt. It has a knack to quickly grow into a major problem right under our noses. When the debt becomes too much to handle, it can feel like there is no way to overcome the financial hardships. Thankfully, bankruptcy may be able to offer you the solution you need.
At The Law Offices of Philip F. Counce, we offer our clients the guidance they need to discharge their credit card debt. We know how overwhelming debt can be, and we work to help you take control of your finances. Our in-depth knowledge of the bankruptcy process can be an invaluable asset in your effort to overcome your debt.
Considerations When You Owe On Credit Cards
The bankruptcy laws are designed to give a fresh financial start to the honest debtor by helping them become debt-free. You can do some things, however well-intentioned, that will result in a debt surviving the bankruptcy process, like balance transfers to take advantage of lower interest rates or charges on the eve of bankruptcy.
Balance transfers and credit card charges on the eve of a bankruptcy case can become a problem only if the creditor formally objects to the discharge by filing an adversary proceeding. Surprisingly, we see very few objections to discharge by the creditors because of the legal cost, uncertainty of success and the uncertainty of collection.
Furthermore, the law places a heavy burden on the creditor to successfully object to your discharge. Generally, credit card companies must prove that you made false statements or that you are guilty of actual fraud to successfully have their debt survive the bankruptcy discharge. The presumption is that you are not guilty of these acts unless the charges are more than $500 for consumer debts made within 90 days before filing bankruptcy, or for cash advances for more than $750 made within 70 days before filing bankruptcy. Even then you may be able to rebut the presumption and obtain a discharge of the debt in question.
We recommend that you seek our advice before transferring balances or continuing to make credit card charges if you possibly think that you may have to file bankruptcy. We will also advise you of the optimal time to file a bankruptcy case to avoid discharge problems.
Keeping Your Credit Cards After Bankruptcy
You are not required to list credit cards that have a zero balance, and sometimes it is possible to keep these cards. We live in an electronically connected world; a credit card issuer may learn about a bankruptcy and cancel your card with a zero balance, but many do not. The best way to keep a card after bankruptcy is to have a card with a zero balance that is not owned by the same banks as the other credit cards listed in your bankruptcy. Caution: Sometimes there are pitfalls to paying off a credit card before filing, so talk to us first and we will guide you through this maze.
Reach Out To A Committed Team
Unlike many firms, you will always discuss your financial situation with an attorney, not a paralegal or assistant. We take the time to understand your needs and answer all of your questions. While we want to solve your problem quickly, it’s important that you are comfortable with the process, and understand how it will impact you. These thoughtful conversations enable us to ensure the best possible outcomes.
Call now to learn about what options are available to you in your particular financial situation and how to stop harassment and debt collection today. Contact our law firm today online or call 901-201-6012 to schedule a free confidential consultation.
3333 Poplar Ave. – just West of Poplar & Highland – Free Parking
We are a Title 11 debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. This ad does not create an attorney-client relationship until a written agreement is signed.