Get Help To Determine Your Eligibility For Filing Credit Card Bankruptcy
Filing credit card bankruptcy could be considered a viable option for those borrowers who are struggling to pay their credit card debts on time on account of job loss or hopeless financial situation. While debtors could consider filing a chapter 7 bankruptcy to get rid of excessive high interest credit card dues, there could be few aspects which need to be considered.
By filing credit card bankruptcy under chapter 7 bankruptcy, a debtor could get all his unsecured debts discharged and thus, secure debt relief. Only those debtors who have obtained credit cards through fraudulent methods may not qualify for a chapter 7 bankruptcy discharge. Alternatively, if a borrower has intentionally not repaid credit dues right from the beginning, he may not get a discharge. Nevertheless, it might not be that easy to prove a debtor’s intent in the court on the same as till date a majority of debtors have not been found engaged in any kind of fraudulent practices at the time of signing up their credit card accounts.
In any case, it could be better if a debtor gets proper personal bankruptcy information prior to filing a chapter 7 bankruptcy. This is because under typical chapter 7 bankruptcy process, all unsecured debts could get discharged but secured debts or back taxes do not. Besides, some other debt obligations like child support or even alimony payments or outcome of civil judgments might also not be eligible for a discharge. Thus, only non-exempt assets could get qualified for a complete discharge under chapter 7. Normally, debtors, who have either no assets or those have significant assets but owe much more than their total values, file for chapter 7 bankruptcy.
However, it could be important for a debtor to thoroughly understand the chapter 7 bankruptcy requirements when he is considering filing chapter 7 for securing a credit card debt discharge. Remember, to be eligible for a chapter 7, a bankruptcy filer is required to undergo two distinct income tests for determining his eligibility. As stated earlier, the other important factor is whether the debtor has incurred debts in bad faith or by committing fraud. The bankruptcy court would go into the finer details of the credit card bankruptcy case and depending upon the nature of borrower’s debts, would decide the debtor is actually eligible for a discharge of all his credit card debts.
Since, the outcome of bankruptcy filing is case specific, it’s always better to get bankruptcy legal advice from a competent bankruptcy lawyer who is well versed with the chapter eligibility and process requirements. Additionally, this could enable you to choose the correct bankruptcy option for your specific financial situation as well. Ultimately, your main objective should be to secure credit card debt relief as well as benefit from your bankruptcy filing.
To get more valuable information on Bankruptcy Credit Counseling and Personal bankruptcy information, it’s highly recommended to utilize the professional services offered by reputed online service providers like LoansStore.
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