Texas Bankruptcy Attorney Helps Clients Escape or Reduce Credit Card Debt
Skilled El Paso lawyer secures discharge or payment restructuring for overburdened consumers
It is easy for consumers in financial straits to fall behind on credit card payments. If you fall into arrears or default, the creditor may submit the account to a debt collector or bring legal action. Credit reporting agencies are notified, which injures your credit rating. If you face insurmountable debt, the Law Offices of Cheryl S. Davis, P.C., with offices in El Paso and Irving, is experienced, knowledgeable and adept in assisting clients navigate their bankruptcy options.
Devising a credit card repayment plan in Chapter 13 bankruptcy
Chapter 13 bankruptcy offers a way to reorganization your financial obligations under court protection. It allows a steady wage earner to create a plan making partial repayment to creditors over a three-to-five-year period. Another benefit of Chapter 13 is that it allows you to keep your home. Meanwhile, you are protected by the automatic stay and the bankruptcy court will discharge your remaining credit card debt once you complete the repayment plan.
Eliminating credit card debt in Chapter 7 bankruptcy
In a Chapter 7 bankruptcy, you can wipe out many of your debts, although you might be required to sell off some of your property to pay off creditors. Once you file for bankruptcy, an automatic stay prevents credit card companies from trying to collect their debts without the bankruptcy court’s permission. Secured creditors – those with a security interest on your property or vehicles – are given priority in getting paid, but credit card debt is generally not secured, so you probably won’t be required to pay it. Property subject to a bankruptcy exemption does not have to be sold in Chapter 7. Once your credit card debt is discharged, the credit card company can’t demand payment any more. I can review your financial situation and determine if a Chapter 7 bankruptcy will help you discharge your credit card debt.
Restoring your credit after bankruptcy
Filing for bankruptcy will likely affect your credit. However, it might actually help you improve your credit sooner by reducing your debt load and giving you a fresh start. I can counsel you on ways to repair your credit after bankruptcy, helping you make explanations to prospective lenders, sellers and even employers about your bankruptcy and its outcome. I can further advise on ways to demonstrate that you can manage your finances effectively and handle debt responsibly. If creditors persist in reporting debts to credit bureaus even though they were discharged in bankruptcy, I can assist you in filing disputes and taking other necessary steps to clear up your record.
Contact a knowledgeable bankruptcy attorney who understands credit card debt relief
When credit card debt overwhelms you, the Law Offices of Cheryl S. Davis, P.C. has the skill and experience to devise and implement a sound strategy for reducing or eliminating that debt. Call 915-320-6226 or contact me online to schedule your consultation in my El Paso or Irving office.