File Bankruptcy – Wipe Out Credit Card Debt?

by Ed Williams on September 15, 2012

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If I file bankruptcy, can I eliminate all of my credit card debt?  That question is on the mind of hundreds of thousands of Americans swamped by heavy credit card debt.  Most of these people never intended to end up this way.

Often some unplanned event came along like a job loss or a medical emergency. In order to survive, they often used credit cards to bridge the gap.  Suddenly they find themselves in trouble with rising interest rates, rising living costs and decreasing earnings.  Looking for a solution, they ask, “is bankruptcy the answer?  Can I wipe out those credit cards and get a fresh start?”

The answer is yes, no, and maybe.  Great! That didn’t help much.  Since the bankruptcy laws were revamped in 2005, the subject is much more complicated.  Many times, a bankruptcy will eliminate all or most of that debt.  There are exceptions, however, that must be evaluated by a bankruptcy attorney who will look at your entire financial situation in light of the extremely complicatedU.S.bankruptcy code and the specific requirements of the state in which you live.

Important factors include how long you have lived at your present address, when and for what purposes you obtained your debt and factors relating to your other expenses and income.  Does this mean that you should forget the whole idea?  No way!  The law provides for relief for those who are underwater financially.

If you are in that position, see a bankruptcy attorney for an expert evaluation.  Understand your options and then make the choice that is best for you and your family.

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