Texas Credit Counseling Attorney
If like millions of other consumers you find yourself owing $15,000 or $100,000 in credit card debt, without quite knowing how your balances could have got so high, bankruptcy relief might be right for you–especially if collection efforts have reached the point of lawsuits, attachment of bank accounts, or seizure of other nonexempt property. Contact the experienced San Antonio bankruptcy attorneys at Rosenbaum Law Offices (now Davis Law Firm) for dependable advice about your credit card problems, and how bankruptcy might help resolve them.
The credit card industry was instrumental in obtaining passage in Congress of the Bankruptcy Code amendments that went into effect in 2005, but for most debtors, there was very little affect on their ability to discharge debts on credit cards or other revolving credit accounts. The industry picture of irresponsible debtors maxing out their cards on vacations or gambling binges shortly before filing for bankruptcy never did reflect a very wide reality. Most bankruptcy cases do involve substantial credit card balances, however, if only because many debtors are forced to use this high interest credit as a last resort in the aftermath of a divorce, a layoff, or other severe dislocation in a family’s finances.
Holders of credit card debt can and sometimes do object to the discharge of obligations that amount to credit card abuse, fraud, or that reflect unusually high activity shortly before filing for bankruptcy. Most of our clients have nothing to fear in this regard. More typically, their access to credit was terminated long before they started thinking seriously about bankruptcy, with a substantial portion of the balance reported on their debt schedules reflecting late fees and over-limit charges.
In this more typical situation, credit card debt is subject to discharge to the same extent as any other unsecured claim. In aChapter 7 case, some unsecured debts may be wiped out or non-exempt property may be liquidated to pay unsecured debt. In a Chapter 13 case, token payments to unsecured creditors are included in the payment plan, and holders of credit card debt will share those payments proportionally with other unsecured creditors.
For a confidential and free consultation about your right to discharge credit card debt in bankruptcy, contact Rosenbaum Law Offices (now Davis Law Firm) in San Antonio.