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Credit Card Debt

Filing bankruptcy can rid you of credit card debt.

A lot of misinformation has been spread about the new bankruptcy laws primarily by credit card companies who would like to have debtors believe that their credit card bills can no longer be discharged. They are lying. Most people can find relief by filing bankruptcy. Generally, the exception applies to debt incurred shortly before filing for luxury good or cash advances made at a time when the cardholder knew that he or she counldn't pay the debt and may even have already consulted with a bankruptcy lawyer.

Absent situations involving abuse, filing a Chapter 7 bankruptcy will allow you to discharge credit card debt and avoid having to pay anything to the credit card companies.

Unlike a Chapter 7, in a Chapter 13 bankruptcy credit card debt is treated as unsecured debt. In other words, you will have to pay a percentage of the debt that you can afford. Basically, what you have to pay is what is left of after you pay your secured creditors and normal housing and living expenses in accordance with established abouts based on the national and regional standards established by law. Chapter 13 plan is simply a court approved and supervised debt repayment plan that consolidates your unsecured debt and reduces your payments. During the plan you pay what you can afford toward the debt and whatever remains unpaid at the end of the plan is discharged in the same way debts are discharged under Chapter 7.

Filing bankruptcy will put an immediate stop to home foreclosure. In addition, eviction, wage garnishment, repossessions and harassment by your creditors will cease.