Rochester, New York Credit Card Debt Law Firm Offers Guidance Regarding Getting out of Credit Card Debt

Rochester Bankruptcy Attorney Helps Solve The Burden of Credit Card Debt

Credit card debt is an overwhelming burden that many households have. There are multiple ways to reduce or eliminate credit card debt, including filing for bankruptcy.

What is Bankruptcy?

Bankruptcy is a process by which you can reduce, eliminate, and/or restructure your debt — including credit card debt — through the federal court system. Although it can be complex, bankruptcy can offer the most definitive debt relief.

Chapter 7, or liquidation bankruptcy, wipes out most types of unsecured debt, including credit card debt. It is designed to give you a fresh start by wiping out most types of debt. Most people do not have property in excess of the exempt property, which they able to retain in a Chapter 7 bankruptcy. The majority of filers end up keeping all of their property, and fully eliminating their credit card debt.

Chapter 13, or reorganization, allows debtors who have regular income through either wages or self employment, to consolidate their debt and pay it off over three to five years under the terms of a court-approved repayment plan. Credit card and other unsecured debt can be reduced to a fractional amount and it is then is paid through the plan without interest. Individuals with high interest car loans are often able to reduce the interest rate. Mortgage arrears can typically be paid over a three to five year period without additional interest. At the end of the repayment period, any remaining debt, including credit card balances will be wiped away.

Besides bankruptcy, you may be able to get rid of your credit card debt through strict budgeting to pay down your debt — using tools like debt stacking, debt management plans, and through negotiation with your credit card company. For more information on getting out of credit card debt, consult with an experienced New York credit card debt attorney.

Contact a Rochester Credit Card Debt Law Firm Today

If you have questions regarding getting out of a mountain of credit card debt, bankruptcy attorney Robert A. Schwartz will help you navigate out of this stressful financial situation. Contact our firm online or call call [custom:phone] to schedule your free initial consultation with a Monroe County bankruptcy attorney today.