Credit Card Debt Relief
We provide legal services to people with credit card debt near Hartford and New Haven Connecticut through chapter 7, chapter 11 and chapter 13 bankruptcy. If you are facing legal action because of you owe money on your credit cards, read on to find out more about how our services will help you get your finances back on track.
We’ll Help You With Your Credit Card Debts
Our law office will help you tackle credit card debt by:
- carefully evaluating your situation to make sure bankruptcy is right for you
- explaining how the automatic stay immediately stops creditors from contacting you
- looking at your other debts to develop a solution that addresses all of them
- exploring whether Chapter 13 may be more appropriate than Chapter 7
Every situation has its own individual opportunities and restraints so it’s important to speak directly to an attorney about your specific case.
End The Cycle of Credit Card Debt
You may have stopped using your cards, but the interest, the fees and the calls from aggressive collection agencies keep coming. So, where does it end? When you contact a bankruptcy lawyer and start getting the help you need?
Chapter 7 bankruptcy provides you with the relief:
- wipes out credit card debt
- stops calls from collectors
- stops lawsuits
- ends wage garnishments
- ends bank account levies
- provides an umbrella of protection for over you and your assets
Chapter 13 bankruptcy provides you with the relief:
- pay some unsecured debts in full
- pay a portion of their non-priority/unsecured debt
- the remaining balance is discharged at the end of the repayment period
- stops lawsuits and bank account levies
- provides breathing room so you can organize your situation
- prevents home foreclosure
- allows you to pay off non-dischargeable debts over a three- to five-year period
What Causes Major Credit Card Debt?
Each year millions of Americans struggle with credit card debt and many families are making minimum payments on their credit cards while watching their balances skyrocket to the point where they can no longer keep up.
Big credit card balances don’t appear on their own. There is usually a reason people use their cards excessively. Very often it is a job loss, a divorce, an unaffordable housing situation, a medical expense or a family problem. Sometimes simple overspending is a problem too – but more often than not, people under financial pressure use credit cards to make ends meet with things like food and gas.
High interest rates and ridiculous late payment penalties make a hard problem worse, while credit card companies continue to barrage us with cute, funny commercials like “What’s in my wallet?” A lot of stress, that’s what.
The good news is that credit card debt can be relatively easy to discharge in bankruptcy. Credit card debt is usually cited as the number one cause of overwhelming debt problems for people throughout the country.
And no wonder – credit card companies entice consumers with low interest rates and zero annual fees. But in this time of economic difficulties, it can be all too easy to be late on a payment or miss one altogether. All of a sudden, that low interest rate becomes a 30 percent APR, the late fees keep mounting – and that $10 item you charged on your card now costs you $25 or more.
We understand how difficult it can be to get out from under mounting debt. We are here to help you find a solution. If you have gone into major debt because of your credit cards, we can help you get rid of those debts and have a fresh start through chapter 7 bankruptcy or chapter 13 bankruptcy.
Can You Get A Credit Card After Bankruptcy?
One of the features of bankruptcy that tends to paralyze consumers into non-action is the loss of their credit cards – even though they may be mostly or totally maxed out. Fortunately bankruptcy doesn’t mean giving up all credit cards forever. Consider the following tips on getting a credit card after bankruptcy but remember to talk to an attorney to get advice specific to your situation:
- There are companies that specialize in cards that “rebuild” your credit, however the interest rates and fees are high, so only open one as a last resort. Only keep it until you get better offers – then either negotiate for a better interest rate or dump the card for one that lets you transfer the balance and has a lower interest fee as soon as possible.
- If the only bank card you have now is a “debit” card, ask for a “credit/debit” card instead. While it still functions like a debit card and relies on what is actually in your account when you use it, the “Visa” or “Master Card” logo on the card will let you do things like make reservations or pay bills online. That can ease the frustration of not having an actual credit card.
- You can get a secured card. Secured cards require you to put down an amount that’s about equal to whatever limit the card has. In other words, if you put down $200, you can get a $200 card (although they may allow a lower deposit). The bank then has the reassurance that they already have their money if you do default.
- You can reaffirm on a credit card you already have. Be careful, though — this removes that debt from all bankruptcy protections. However, if you have a small balance on a card, it might be worth doing. One note of caution — if you pay that card off shortly after bankruptcy, the company will probably cancel it. However, if you keep a small amount of debt on it, they usually won’t. Regular payments will then help raise your credit score faster.
- Ask a close relative or friend to list you as an authorized user on one of his or her credit cards if you feel like he or she trusts you not to abuse the privilege. That can really help raise your credit score and qualify you for regular card of your own faster.
Get In Touch With Us
We are in the business of solving difficult financial problems and providing debt solutions. Our attorneys have decades of relevant experience and are eager to help. Contact us to get the bankruptcy advice you need with a free consultation or call us today!