Credit card debt can get out of control quickly. Perhaps you used a credit card to cover unexpected medical bills or recently lost your job and can’t keep up with your bills. Regardless of the reason you are in credit card debt, high interest rates and aggressive collection tactics can make this type of debt difficult to deal with. Fortunately, bankruptcy may provide you with a way to eliminate credit cards and other kinds of debt.
The most effective way to determine whether you can benefit from filing for bankruptcy is by talking to a Memphis bankruptcy attorney as soon as you can. Call our office to learn more.
How Does Bankruptcy Eliminate Debt?
At this point, you may be wondering exactly how bankruptcy can eliminate credit card debt, and that’s a good question. Chapter 7 is a type of bankruptcy that involves the liquidation of a person’s non-exempt assets. Once those assets are liquidated, the proceeds are used to pay down debts. Any remaining debts that are leftover are discharged, provided they are not nondischargeable debts like student loans or debts related to alimony or child support.
Credit card debts are just one type of debt that can be discharged in bankruptcy. Some others include:
- Medical bills
- Past-due rent
- Utility bills
- Car loans
- Personal loans
- Certain tax debts
Many people who file for Chapter 7 bankruptcy have no non-exempt assets to sell, which means they often eliminate all of their debts and do not have to give up any of their assets. An attorney can determine how filing for bankruptcy will affect your financial situation.
Learn More from a Memphis Tn. Bankruptcy Lawyer Today
If you are struggling with keeping up with your credit card or other bills and don’t see a way out, bankruptcy may be able to help. At Hurst Law Firm, PA, we have helped many people just like you get a fresh start through bankruptcy. Contact us online or call 901.725.1000 to schedule your free case evaluation with a bankruptcy lawyer in Memphis.