Eliminating or Reducing Your Credit Card Debt

Unfortunately, credit card debts have a tendency to snowball out of control. If you miss a minimum payment on your credit card bill, interest rates can skyrocket – shooting up from 13 percent to 26 percent or more. This significant increase creates unmanageable bills that often result in a devastating amount of debt.

Many times, people will forgo their mortgage payments in order to make their credit card payments on time and avoid further interest rate increases. When this happens, they run the risk of losing their properties to foreclosure.

You do not have to be a victim of unmanageable credit card debt. By filing for Chapter 7 or Chapter 13 bankruptcy, you can regain control of your debts and rebuild your credit standing before you lose your home. Contact Birmingham bankruptcy lawyer Paula Greenway at [phone-number] to learn more about your options.

How Chapter 7 Affects Your Debt

Chapter 7 bankruptcy, also known as liquidation bankruptcy, will eliminate your credit card debt. This bankruptcy option rids you of all unsecured debt, such as credit card and hospital bills.

Not everyone is eligible for Chapter 7 bankruptcy. Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, extensive requirements were established for those wishing to file Chapter 7. Some people who were formerly eligible to file are now turned away.

To determine whether or not you can file Chapter 7 bankruptcy, contact Birmingham bankruptcy lawyer Paula Greenway today at [phone-number].

How Chapter 13 Affects Your Debt

Chapter 13 bankruptcy is a method of restructuring your repayment plan into a format that you can meet more easily. After filing, you will be given three to five years to pay back all secured debts. Many times, interest rates will be reduced, so your monthly payments will be lower. Unsecured debts can be reduced or eliminated, but in certain situations they must be paid back in full.

In order to be eligible for Chapter 13, you must have a steady source of income. This requirement is in place because your new plan is based upon how much money you make each month. Without a secure inflow of money, you will be unable to pay off your restructured debts.

To learn more about how you can file Chapter 13 bankruptcy, contact Birmingham bankruptcy lawyer Paula Greenway today at [phone-number].

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Filing for bankruptcy gives you federal protection against creditor harassment, wage garnishments, foreclosure and repossession. Credit card companies are also obligated to accept the terms of your new repayment plan. No other credit counseling plan can offer you this type of security.

If you would like to learn more about how filing for Chapter 7 or Chapter 13 bankruptcy can eliminate or reduce your credit card debt, contact Birmingham bankruptcy lawyer Paula Greenway at [phone-number] to schedule a free consultation.

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