Credit Card Debt

What Will Bankruptcy Do To My Credit Card Debt?

Make no Mistake About it, Even in this Economy, Credit Card Companies are Still MAKING PROFITS!

Is it a Wonder?


A Few Pointers On Credit Card Debt.
   Nearly all credit card debt is unsecured debt, meaning that it is a debt that a creditor has not secured by collateral.  The creditor is called an unsecured creditor, as opposed to a secured creditor which holds a lien on property (collateral) to secure payment of a debt. Secured creditors have a lien or right to foreclose on collateral for payment of a secured debt.

The credit cards industry has become a financial crisis all of its own.  Even though interest sometimes of over 30% accrues, millions of people everyday are living on credit cards to make ends meet, all with the expectation, and intention, to payback those small daily “loans”. The problem: that “someday” never seems to arrive, and those “loans” are due.  Unfortunately, we are in a “credit card society” where billions of dollars every year are being earned from the credit companies “banks” supporting this crisis.  It is not a crisis to them!  In fact, according to the Federal Reserve, the size of the total consumer debt in the U.S grew nearly five times in size from 1980 ($355 billion) to 2001 ($1.7 trillion). Consumer debt in 2016 stood at $747,000,000,000.00.  (That’s a lot of “0”‘s!)

The average household in 2016 carried nearly $16,061 in credit card debt.

So what happens to your credit card debt when you file for bankruptcy protection?  In a Chapter 7 Bankruptcy, one of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a “fresh start.”  The debtor has no liability for discharged debts.  Although an individual chapter 7 case usually results in a discharge of debts, the right to a discharge is not absolute, and some types of debts are not discharged, such as certain student loans and taxes. Moreover, a bankruptcy discharge does not extinguish a lien on property.  Subject to certain exceptions, your credit card debt will be discharged through a Chapter 7 bankruptcy however.  Talk to a bankruptcy attorney today for more information.

Call Markwell Law, LLC today for a free consultation about your debt options.

Don’t let another day go by without having a zealous attorney protecting your future.

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