credit card problems


Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a total elimination of the debts.  Complex calcuations of the applicant's income and monthly expenses are made to determine elibility for this method which provides a clean slatee for the debtor.

The most common reason to use Chapter 7 is for the elimination of credit card debt, elimination of unsecured loans due to a financial crisis, climing out from under high medical bills generated by accident of illness.

If you meet the requirements to file for this program, within 3 months after filing the paperwork you loans can be totally forgiven and removed.  This means you do not ever have to pay those obligations - but it also will mean serious damage to your credit rating for ten years.  If your credit is already destroyed by your inability to meet payments, this government program may be for you.

You will need a bankruptcy attorney as State laws governing what debts you can eliminate and what assets you are allowed to keep is covered by State law and varies widely.  This debt solution does not require you to give up your home or car as you are able to specify these items to remain outsite your filing and re-commit to making payment for them.

Whether you are able to keep your home depends on State laws where you live.  Each State has an amount of equity in your home that is allowed and for one state it might be as low as $7500 while another State has a $75,000 exemption.

Your lawyer will require you to provide documentation of your budget, including copies of utility bills, the amount you spend on food and insurance, etc  Start a file and provide everything he requests as quickly as you can.  It can be a painful process because money is an emotional topic and it's depressing to realize you have created debt you can never pay.  The pain is solved when your filing is dismissed by the Court and those heavy debts disappear from your shoulders.

Yes, you will need to rebuild credit - but it's possible to do that much quicker than the ten years the Chapter 7 Bankruptcy remains on your credit report.