My wife and I made the decision to open a residential cleaning business. We needed enough money to get the equipment, do a bit of advertising and get the licensing and insurance to protect ourselves and our customers. For about two years, things went very well, but then, things took a terrible spin for the worst after we hired a few employees to help us with the workload. Since then, we have gone bankrupt and have gone back to working full time jobs. If you are struggling with your business and considering bankruptcy, this blog can give you some answers to the many questions that you have.
One of the top causes of debt problems people face is owing money on their credit cards. If you owe a lot of money on yours and cannot seem to even make a dent in your balances, you might be at the point where you should consider bankruptcy. Using Chapter 7 bankruptcy could provide relief for the debts you owe on your credit cards, and there are several important things to understand about Chapter 7 and its effects on credit card bills.
It usually will
The main benefit offered through this branch of bankruptcy is the elimination, or forgiveness, of unsecured debt, and credit card debt falls into this category. In fact, finding relief from credit card debt is a top reason people turn to Chapter 7. When you meet with a lawyer for a consultation visit, the lawyer will want to take a look at the debt you owe to determine if it would qualify. In most cases, credit card debt will fall into the category of qualifying debts, and this means you would receive a discharge from it if you go through with filing for Chapter 7.
There are exceptions to the rule, though
While you can usually get a discharge on credit card debt, there are some exceptions to the rule. The main exception involves new debt that you recently racked up. For example, if you go out shopping for a new wardrobe right before you file for bankruptcy, this new debt probably will not qualify for a discharge, simply because you just incurred it. Additionally, you cannot take a cash advance from your credit cards just before filing for Chapter 7. There are waiting periods for this, and your lawyer will help you understand what these are.
Why you should get an evaluation before choosing bankruptcy
The best way to know what debts would qualify and which ones would not is by visiting a lawyer. When you visit one, bring recent credit card statements with you so that the lawyer can see exactly what debts you have and how recent they are. This will help the lawyer give you a clear understanding of how filing for Chapter 7 would affect you, your finances, and the future of your finances.
If you want to become debt-free and are considering bankruptcy as an option, talk to a lawyer like Greg Dunn Bankruptcy Attorney. You can schedule an appointment by calling a bankruptcy law firm today.
Share