If you are facing a financial crisis due to your credit cards, you should know that you are not alone. The average credit card debt for an American household as of March 2010 was $15,788. The total amount of revolving debt in the United States, a large portion which is related to credit cards, was over $850 billion.
Credit card debt can feel overwhelming, but an Albuquerque bankruptcy attorney may be able to help you achieve a fresh start through a Chapter 7 or Chapter 13 bankruptcy. Credit card debt can be difficult to pay down thanks to the combination of high interest rates and steep penalties for missed or late payments, both of which can have a serious effect on your credit score. Consolidation is often not an option due to high interest rates and long payoff times. Bankruptcy can help eliminate the debt and end creditor harassment.
Albuquerque Personal Bankruptcy
Chapter 7 bankruptcy is available for those debtors who pass the means test. Unsecured debts such as those from credit cards will be discharged. Our bankruptcy lawyers can help you determine whether or not you qualify for a Chapter 7 bankruptcy; we will assist you in completing your bankruptcy forms, and determining which bankruptcy exemptions will help you retain the most assets.
Chapter 13 bankruptcy is appropriate for those debtors who do not qualify for Chapter 7. Debtors enter into a repayment plan lasting typically three to five years. Debts are arranged according to priority, with secured debts considered the highest priority and unsecured debts the lowest priority. After the repayment plan is successfully concluded, remaining debts will generally be discharged.
Life After Bankruptcy
Once your debts have been discharged, you will have your financial fresh start. You may have the opportunity to rebuild your credit score through the careful use of secured lines of credit, and you may even end up with a higher score than you had prior to filing.
Get out of credit card debt today!
Call Melwani Law toll free at
866-501-8500 for a free consultation.
When working with Melwani Law, we will provide you with the legal advice you need to make the best decisions for your situation and will file the complex bankruptcy forms on your behalf. It is essential that you participate fully in the process for the best results.
If you are facing insurmountable credit card debt and are considering your options, contact the experienced Albuquerque, New Mexico bankruptcy lawyers at Melwani Law today for a free initial consultation.