Filing bankruptcy to get rid of credit card debt

IT IS not difficult to get into credit card debt. If you are used to buying things on credit, perhaps you don’t even realize how much your borrowing is really costing you. Unless you can pay the bill in full when you get it, in most cases you are paying a lot more than the cost of the item you purchased due to the interest that the credit card company is charging you. And of course, if you fail to make your payments on time, you will be charged late penalty fees and your interest rate can often be raised.  In some cases, it can be worse: You can be sued by the creditor and be forced to pay through a wage garnishment or a bank levy.  If you own a home, a lien can be placed on your property.
As a way to get out of credit card debt, some people choose to file bankruptcy after they’ve realized that it is their only realistic option.  Often, debts have accumulated over the years and in a lot of cases, they have been turned over to collection agencies. Some people try to ignore them for as long as they can until one day they get sued by a creditor and that’s when they panic.  I see a lot of these cases every day. It makes me wonder why people wait so long before taking any action because in a lot of cases, their problems could have been avoided had they acted sooner.
When contemplating bankruptcy as an option to get out of credit card debt, a good question to ask yourself is how long it will take you to pay off your debt on your own at the interest rate that the credit card company is charging you. Credit card companies are now required to give you this information on the monthly billing statement that you receive. But an even more important question to ask is whether or not it is EVEN POSSIBLE to avoid bankruptcy considering that (a) your creditors are now demanding that you pay the full amount because your account is delinquent; and (b) whether creditors have taken legal action against you by filing a lawsuit. If you have been served a lawsuit, your time is limited and if you do nothing, you may regret the legal consequences that will follow.
If you are eligible for Chapter 7 relief, you may be able to wipe out your credit card debts completely and not have to pay anything back. If you are in a position to pay some of what you owe, however, you may have no choice but to consolidate your bills through Chapter 13 bankruptcy and reduce the interest rate on your credit cards to 0% while forcing your creditors to accept only what you can afford. Consult with an experienced and knowledgeable bankruptcy attorney to determine which chapter of bankruptcy is appropriate for your situation.
Creditor harassment will stop immediately upon filing for bankruptcy relief. Creditors are prohibited from suing you, garnishing your wages or freezing your bank accounts.  Perhaps you’ve done everything you can to pay your debts but you just can’t do it anymore.  If that hasn’t worked for you, maybe you need a different strategy. For a free consultation, call my office at Toll-Free 1 (866) 477-7772 and we will help you step by step in finding a solution that’s right for you.

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None of the information herein is intended to give legal advice for any specific situation.  Atty. Ray Bulaon has successfully helped thousands of clients in getting out of debt. For a free attorney evaluation of your situation, please call  Ray Bulaon Law Offices at  TOLL FREE 1 (866) 477-7772. 

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