Credit Card Debt in Bankruptcy

Credit Card Debt in Bankruptcy

The Liviakis Law Firm has been assisting individuals and families with debt resolution and financial difficulties since 2008. Burgeoning credit card debt, caused by inability to pay more than minimum payments and high interest rates, is often cited as a reason for considering filing for Chapter 7 or Chapter 13 bankruptcy.

Filing for bankruptcy will ensure an end to creditor harassment, garnishment of wages and foreclosure proceedings, as well as most other legal proceedings related to your debts.
To discuss how to eliminate credit card debt in bankruptcy, contact us today for a free initial consultation.

Can Bankruptcy Clear Credit Card Debt?

Credit card debt is dischargeable under Chapter 7 and Chapter 13 bankruptcy and is generally unsecured by collateral. If unsecured, credit card debt is prioritized behind secured debts such as mortgage payments in Chapter 7 bankruptcy. Proceeds from liquidation of assets may cover only a small part of your credit, or none at all, in full satisfaction of the debt owed.

Credit card debt can also be included in the development of an affordable repayment plan under Chapter 13 bankruptcy. This allows it to be paid off in manageable payments over a three- to five-year period.

Eliminating Credit Card Debt With a Sacramento Bankruptcy Attorney

Depending on your unique individual circumstances, we might be able to negotiate a lump-sum payment for less than the full amount owed as settlement of your debt rather than filing for bankruptcy. For high income individuals debt settlement is a powerful debt relief tool that helps avoid the need to file bankruptcy.
We represent clients in communities throughout Sacramento County, El Dorado County and Placer County, California. My offices are conveniently located in Rancho Cordova and Sacramento.

To discuss how to clear credit card debt by filing for bankruptcy, contact our office for a free initial consultation. An experienced, knowledgeable bankruptcy lawyer makes a difference in obtaining the best possible outcome and outlook for your financial future.