Credit card debt can be a major financial burden. It can be overwhelming and, at times, seem impossible to manage. It can affect your ability to make other financial decisions, such as saving for retirement or buying a home. It can also affect your credit score, making it harder to get loans and other financial products.

It’s important to understand how to manage your credit card debt and make smarter financial decisions to ensure that you can live comfortably and securely.

Bankruptcy is a legal process that is designed to provide relief from overwhelming debt, and it can be a viable option for those in need of financial assistance. It can be a big decision to make, but with the right knowledge and advice, filing for bankruptcy can provide the opportunity to get a fresh start and start rebuilding your financial future.

What Happens When You Get Behind on Your Credit Card Payments?

When you get behind on your credit card payments, it can be a difficult and stressful situation to handle. It’s important to understand what happens when you start to fall behind on your credit card payments.

The first thing that may happen is that your creditor will send the debt to a collection agency. This means that the collection agency will attempt to collect the debt from you. If the collection agency cannot collect the debt, they may file a lawsuit against you for payment of the debt. If this happens, it is important to speak with an attorney who specializes in debt collection lawsuits so that you can protect your rights and make sure all of your legal obligations are met.

Additionally, if you are unable to pay off the credit card debt, you may also decide to file chapter 7 bankruptcy in order to discharge some or all of the debt. In this case, it is important to find experienced legal counsel who can help you with filing a Chapter 7 bankruptcy case and navigating through the process of eliminating your debt. Ultimately, getting behind on credit card payments can be frightening, but there are ways to tackle this issue, such as filing for bankruptcy protection.

Is Credit Card Debt a Good Reason To File for Bankruptcy Protection?

Credit card debt can be a good reason to file for bankruptcy protection, especially if the debt is becoming unmanageable and there is no other way to pay it off.

Bankruptcy protection can provide relief from unsecured debts like credit cards. When filing for bankruptcy protection, you may choose to file either a Chapter 7 or Chapter 13 bankruptcy case depending on your financial situation.

Can I Exclude a Credit Card Account From Bankruptcy?

Generally, any debt that you have incurred prior to filing for bankruptcy will be included in the bankruptcy, including any credit cards you may have. However, depending on the specifics of your situation and the advice of your bankruptcy attorney, there are limited circumstances where a credit card account can be excluded from a bankruptcy filing.

It is important to remember that while excluding a credit card account from your bankruptcy may protect it from being discharged, it could still have an impact on your credit report and overall score. Additionally, if the account remains open after the bankruptcy is filed then interest charges and other fees could continue to accrue on the balance owed and will not necessarily be discharged as part of the bankruptcy.

Ultimately, before deciding whether to exclude a credit card account from your bankruptcy filing or not, it is highly recommended that you speak with a qualified and experienced bankruptcy attorney who can review all of your options and provide you with legal advice tailored to your individual situation.

Can You Declare Bankruptcy on Credit Cards Only?

No, you cannot file for bankruptcy only on credit cards. When you file for bankruptcy, you must include all types of debt, including medical bills, loans, and other types of debts that are not related to credit cards.

Schedule a Consultation With a Bankruptcy Lawyer – Kain + Henehan

Bankruptcy protection can provide relief from unsecured debts like credit card debt and can be a viable option for those who have high levels of credit card debt. At Kain + Henehan, we are well prepared to give you good legal advice, and if bankruptcy is right for you, we can take care of helping you file.

Before deciding whether you want to file for bankruptcy protection or choose another option, it is highly recommended that you consult with us and we can review all of your options and provide you with legal advice tailored to your individual situation. Bill Kain and Margaret Henehan of Kain + Henehan are experienced bankruptcy lawyers with offices in St. Cloud, Minnesota and the Twin Cities area. We serve all Minnesotans and you can schedule a free 60 minute consultation virtually, by phone, or in person.   Contact us by calling (612) 438-8006 or filling out the online form.