Reducing Or Discharging Your Credit Card Debt May Be Possible With Help From Our Bankruptcy Attorney
When you are low on cash or need to pay a large medical bill, it is too easy to reach for a credit card. Every year, a growing number of people face crippling credit card debt. Fortunately, you have options when it comes to your debt problems. Our bankruptcy attorney, Bill Lively, is here to help you address your credit card debt with confidence and lay the foundation for a more secure financial future.
We believe that everyone deserves a fresh start. We help our clients get out of debt so that they can look toward the future. The law firm of William H. Lively, Jr. WHL, PLLC, serves clients in Tyler and the surrounding counties. Our entire team understands your situation, and we are here to help.
For a free consultation, please call us in Tyler at 903-920-0008 or complete our contact form. We are the premier bankruptcy law firm serving all of East Texas.
Helping You Create A Plan To Get Out Of Debt
From late fees to high interest rates on your remaining balance, it can feel impossible to get out from under the weight of credit card debt. When you cannot pay your credit card bills, the creditor often will submit your account to a debt collector or file legal action. Aside from the annoying phone calls, having an account in debt collection takes a significant toll on your credit score and ability to obtain future loans. However, there are options to reduce or discharge your debt entirely.
When you work with us at William H. Lively, Jr. WHL, PLLC, we will sit down with you and evaluate your case and fully explain your options. Whether you choose to file for Chapter 7 or 13 bankruptcy, you can count on us to be by your side.
Chapter 7 Bankruptcy
For people with massive amounts of credit card debt, Chapter 7 bankruptcy is a great option that provides sweeping relief. It is also generally less expensive and shorter in duration than Chapter 13 bankruptcy. To qualify for Chapter 7, you must pass a means test. This means test is based upon an examination of your monthly income and expenses among other factors.
Chapter 7 can eliminate your credit card debt, old utility bills, medical bills, amounts owed on repossessed vehicles and uninsured car accident judgments, among other debts. Chapter 7 will not eliminate debts such as child and spousal support and student loans. We will help you determine if you qualify for Chapter 7 and will be by your side throughout the process. If you don’t qualify for Chapter 7 bankruptcy, you may still be eligible for Chapter 13.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy allows you to make regular payments to your creditors within three to five years. In some situations, you may even be able to discharge some or all of your unsecured debt, including credit cards. How much of your credit card debt you will pay depends on your nonexempt property and disposable income. While you may have to pay back some of your debt in Chapter 13 bankruptcy, it is a good option for clients who do not qualify for Chapter 7.
Common Questions About Credit Card Debt And Bankruptcy
Can bankruptcy completely wipe out my credit card debt?
In many instances, filing for bankruptcy allows for the total discharge of unsecured credit card balances, legally forgiving the obligation to pay. Under Chapter 7, these balances are typically eliminated at the conclusion of the brief proceedings, providing immediate relief from creditors. If you proceed with Chapter 13, any credit card debt not covered by your structured repayment plan is usually wiped out once the plan is completed.
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 is referred to as a “liquidation” bankruptcy, designed to quickly eliminate most unsecured debts for those who meet income requirements. Texas offers homestead and personal property exemptions that often allow a debtor to keep their home and vehicle even in a liquidation.
Conversely, Chapter 13 serves as a “reorganization” tool, allowing an individual with steady income to consolidate their debts into a manageable monthly payment over several years. While Chapter 7 is faster, Chapter 13 offers protections for those looking to catch up on mortgage arrears or protect valuable nonexempt assets.
Will filing for Chapter 7 bankruptcy erase all of my debts?
While Chapter 7 is powerful for resolving credit card and medical debt, it does not provide a universal “delete” button for every financial obligation. Certain “nondischargeable” debts, such as most taxes, domestic support obligations and criminal restitution, will remain your responsibility after the case closes.
What happens if I wait to handle my credit card debt?
Delaying action can lead to a “snowball effect” where compounding interest and late penalties cause the balance to grow far beyond what was originally borrowed. Furthermore, creditors may transition from phone calls to lawsuits, which can result in frozen bank accounts or judgment liens against your property. Taking a proactive stance allows for the invocation of the “automatic stay,” which halts collection efforts the moment a petition is filed.
I’m nervous about talking to a lawyer. How do I know which option is right for me?
It is common to feel hesitant, but determining the appropriate path requires a technical analysis of monthly income, total debt load and protected assets. Legal counsel can provide an objective review of your financial standing to determine if you pass the means test for Chapter 7 or if Chapter 13 is more sustainable. This professional assessment provides clarity on the legal remedies available so that you can make a strategic decision for long-term financial recovery.
The First Step Toward Your Fresh Start
We understand the stress that debt can bring to your life, and we want to help you pursue a fresh start. Our founding attorney, Bill Lively, has years of experience helping individuals, business owners and families get out of debt. Call 903-920-0008 or fill out our contact form today to schedule a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.