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A Chapter 7 & 13 bankruptcy can wipe out all of your credit card bills.
Overwhelming credit card debt is a major reason people file bankruptcy. It is also almost always easily discharged in bankruptcy. The only reason it would not be discharged is if the creditor were able to prove that you committed fraud when you used your credit card. The typical fraud case alleges that you knew you were about to file bankruptcy and went on a spending spree to max out your cards with no intention of making a payment.
The creditor has to file a separate case against you in bankruptcy court. If they lose and the court finds they were not justified in filing the case, they have to pay your attorney fees. This provision is in the law to prevent creditors from trying to file frivolous cases to shake down debtors who have fewer resources than the credit card companies. Fraud is a hard case to prove, and a creditor usually won’t bother for smaller amounts, especially if they are only for a few necessities such as food and gas.
Filing for a Chapter 7 or 13 bankruptcy in Washington State to get rid of your credit card debt.
Courts lean toward the goal of giving a debtor a fresh start. It is easy to get overwhelmed by credit card debt. Many people have an unrealistic idea of how much their income will increase or make a charge in an emergency, fully intending to pay the debt back. This is especially easy when credit card companies offer incentives such as frequent flyer miles, bonuses and easy balance transfers at low introductory rates.
Credit card companies are very enticing when they want you to get into debt and pay high interest rates, late charges and over limit fees. However, once you default you may find all the credit card companies suddenly cut off your spending limit. Credit card companies are very aggressive about filing lawsuits and garnishing wages.
If credit cards receive anything in a bankruptcy, they are treated as “general unsecured creditors”. This class of debt is the lowest priority to be paid in bankruptcy. They must file a claim with the bankruptcy court to be paid. If they miss the deadline to file a claim, they do not receive anything and the debt is discharged. In a Chapter 7 they are paid their pro rata share of all the unsecured claims file. In a Chapter 13, they are paid a percentage based on how much you can afford to pay.
Talk to a skilled Everett, WA bankruptcy lawyer from our team for a FREE consultation!
The Everett bankruptcy attorneys with our law firm are here to provide you with answers and solutions to your credit card debt elimination. We understand how overwhelming it can be in tough financial circumstances and therefore provide our services at affordable, flexible rates. Find out the differences between how a Chapter 7 or 13 bankruptcy can be best for you! We make credit card debt elimination easier with our affordable flat low fees. Get in touch today.
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The Central Building - 1721 Hewitt Ave
Everett, WA 98201
Our debt relief and bankruptcy lawyers serve clients throughout Snohomish County and Western Washington. These cities include, but are not limited to the following localities: Everett, Arlington, Marysville, Edmonds, Brier, Lynnwood, Monroe, Bothell, Lake Stevens, Mukilteo, Mountlake Terrace, and Snohomish. If you live in Snohomish County and have questions about your Washington State bankruptcy and debt relief options, we invite you to call our offices for a free, no obligation initial consultation.