Filing a credit card bankruptcy can be the sweetest escape from debt. Unlike other options, this will not oblige monthly payment. But it is not as easy as it may seem. Filing a bankruptcy will appear on your personal credit report and will stay there for ten years. Your credit rating will improve overtime. But the long waiting will be a great burden for your financial and professional life.
Recent changes in the Bankruptcy Abuse Prevention and Consumer Prevention Act 2005 now require passing a means test to determine if you're eligible to file for credit card bankruptcy. Basically, the means test will determine your average income for the past six months, your assets, and other liabilities. Experts also suggest that a person with frozen bank accounts, no job, suffering lawsuits, and has debts in other unsecured loans should file bankruptcy.
Bankruptcy Attorney Las Vegas, Bankruptcy Information, Bankruptcy Auto Loans,
Chapter 7 VS Chapter 13
The total wiping out of credit card debt is only possible if bankruptcy is filed under Chapter 7. The means test mentioned above is required for this chapter. Besides the test, your non-exempt assets like market-valuable collection, jewelries, a second car, or a second home have to be handed over to a trustee. All these will be used to raise money to pay the creditors.
Filing Chapter 7 can also expose you to the risk of facing criminal bankruptcy fraud charges. After filling, the creditor can also file an adversary action or proceeding against you. There, the creditor will state that your debt should not be discharged because you committed fraud that led to debt.
Filing Chapter 13 is the easier route. It can be approved without too much scrutinizes, but you will be required to pay back the debt in the agreed repayment plan.
Honest to Goodness
Filing credit card bankruptcy can only cause problems if there were dishonesties on your part. If you're really incapable of paying the debt, then the debt will be discharged without the hassles. But then, it is important to be wise in this situation and get pieces of advice from a finance attorney. The creditor will do everything in his power to get as much money as possible.
Stop using the credit card as soon as you've decide to file for bankruptcy. Legal advisers suggest waiting at least 70 days before actually filing your case. And during this period, there should be no spending on anything, especially luxury items.
In fact, luxury goods like expensive clothes, furniture, big TV, and precious jewelries that can total to more than $600 within 90 days will not be discharged. Cash advances of more than $875 within 70 days will not be discharged as well.
Also prepare all your credit card statements and financial records. These will come in handy in case the creditor will accuse you of having committed fraud.
Honesty, as they always say, is the best policy. There will be no problem filing for a Chapter 7 if you've been honest ever since the start. Even the creditor's adversary action will never succeed. Credit card bankruptcy may be a long and winding process, but it will be worth all the pain.
Bankruptcy Attorney Oklahoma City
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Attorney Oklahoma City
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment