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St Cloud, MN 56301

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Mendota Heights, MN 55120

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Credit Card Debt

couple bothered with credit card debt

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 are behind on your credit card debt.

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 complicated and stressful, 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

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.

Before deciding whether you want to file for bankruptcy protection or choose another option, it is highly recommended that you consult with a qualified and experienced attorney who can review all of your options and provide you with legal advice tailored to your individual situation. Kain + Henehan is an experienced bankruptcy firm with offices in St. Cloud, Minnesota, and the Twin Cities. Contact us by calling (612) 438-8006 or filling out the online form.

Filing a Bankruptcy with Kain + Henehan in 4 Steps:

Your consultation can be completed virtually, via phone, or in person at one of our two offices in Mendota Heights and St. Cloud.

We’ll confirm and finalize your paperwork. Once you’re ready, you’ll sign off on your bankruptcy filing.

We submit your paperwork to the courts. At this point, all of the protections of a bankruptcy are in place. We only have one quick phone call or Zoom meeting to confirm your paperwork.

If you filed a Chapter 7, your debt will be discharged in about 3 months. If your case is a Chapter 13, your debt will be discharged in 3 to 5 years, according to the payment plan set in your case.

“BANKRUPTCY ISN’T THE END.
IT’S AN ENTIRELY NEW BEGINNING.”

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612-438-8006

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