It can be so easy to fall behind in credit card payments. Whether this issue accumulated slowly over time or a single serious event resulted in substantial debt, past due credit card payments can cause significant stress and concern; however, it is important to know that if you have accumulated significant credit card debt you do have options. At the Cornwell Law Firm, our experienced debt relief attorneys are here to explain your options and offer legal help. Call or contact our Duluth office today to schedule a free consultation of your case.
File for Bankruptcy
One option for eliminating credit card debt is to file for bankruptcy. Chapter 7 and Chapter 13 bankruptcy can both provide avenues for reducing or eliminating credit card debt. Chapter 7 bankruptcy is known as a liquidation bankruptcy, and debtors who do not have enough income or assets to fully pay off their debts qualify for this option. A bankruptcy trustee inventories the assets of the debtor and liquidates the assets that are not exempt from the process to pay off debts, including credit card debts. Once the Chapter 7 proceeding is complete, any remaining credit card debt is wiped clean, which allows the debtor a fresh financial slate.
Chapter 13 bankruptcy allows a debtor to restructure their debts, including credit card debt. A bankruptcy trustee may renegotiate the debts owed and incorporate them into a single payment made by the debtor every month. The debtor gets to keep their assets and pays down the debts every month for three to five years. With this method, the credit card debt is not eliminated but paid off in a manageable payment plan over time. An experienced attorney like those at the Cornwell Law Firm can review your options and help determine if this is the best option for you.
Negotiating a Debt Settlement
Another option for reducing or eliminating credit card debt is by negotiating a debt settlement with a knowledgeable debt relief attorney. Credit card companies are typically willing to negotiate with debtors in order to continue receiving payments on the debt. Debt settlements may be able to do the following:
- End collection harassment by creditors,
- Eliminate late fees,
- Eliminate or reduce interest payments, and
- Reorganize the debt
A debt settlement can result in a longer period of time to pay off the credit card debt or make the payments more manageable. This in turn can help you pay down your debt in a way that does not feel so overwhelming or impossible with the help of a qualified attorney.
Call or Contact Us Now
Are you or a loved one struggling with significant credit card debt and do not know what to do? If so, the experienced and knowledgeable debt relief and bankruptcy attorneys at the Cornwell Law Firm in Duluth are here to help. Call the office or contact us now to schedule a free consultation of your case and learn more about your legal options..