Orange County Credit Card Debt Attorney
Practice Areas
Southern California Bankruptcy Lawyers for Credit Card Debt
Being in debt can be incredibly stressful and frustrating, to say the least. Not only that, but being in debt can leave you open to lawsuits, wage garnishment, repossession, and more. When people fall into credit card debt, credit card companies will often hire debt collectors to make collection efforts against their cardholders, or will file a lawsuit against their cardholders, so that they can get their money back.
If your credit card company has filed a lawsuit against you, or if you simply cannot get a handle on your credit card debt, an Orange County bankruptcy attorney at Marshack Hays Wood can help. Our team will provide you with dedicated legal representation and can even help you erase your debt by filing for bankruptcy. Call us at (949) 333-7777 to schedule a consultation with one of our attorneys today.
Should I File Bankruptcy on Credit Card Debt?
Bankruptcy can be a great debt settlement option for those in credit card debt, since credit card debt is often discharged in bankruptcy. However, it’s important to evaluate your options and ensure you are making the right choice for your situation.
If you are being sued over outstanding credit card balances or an alleged breach of contract, a credit card debt attorney can help you explore your legal options, including bankruptcy.
Can Bankruptcy Erase Credit Card Debt?
Yes, bankruptcy can erase your credit card debt. If you are in debt to a bank or credit union due to an unpaid credit card balance, you can file for bankruptcy and have your credit card debt, as well as other unsecured debts, erased.
Is Credit Card Debt a Secured or Unsecured Debt?
Credit card debt is often an unsecured debt, meaning that there is no collateral tied to the debt. In this case, banks will often turn to debt collection agencies to help recover funds to pay off the debt.
In some situations, however, credit card debt can be a secured debt, meaning that if someone falls behind on their payments, the bank may seize and liquidate the collateral to cover the cardholder’s debt.
How to File Bankruptcy on Credit Cards
Navigating the bankruptcy system and understanding consumer law can be difficult without the proper legal assistance. A credit card debt attorney can take you through the bankruptcy process, help you properly declare bankruptcy, and ensure you receive the best possible outcome for your debt situation.
What Happens When You File Bankruptcy on Credit Card Debt?
When you file for bankruptcy, debt collection agencies must cease collection efforts, and any credit card lawsuits you may face are paused. Once the process is complete, your debts will likely either be paid off or discharged, leaving you completely debt-free. The process by which you become debt-free can vary, depending on the chapter of the bankruptcy code that you file under.
Chapter 7 Bankruptcy
Under Chapter 7 bankruptcy, your assets are liquidated to pay off some of your debts. After that, all other unpaid debts will be discharged, or erased. Credit card debt is almost always discharged, but some exceptions may prevent you from having your credit card debt discharged. For example, if you rack up credit card debt right before filing for bankruptcy, with no intent to pay it off, that debt may not be discharged.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy works by establishing a payment plan, allowing you to pay off some of your debt over time. Normally, you’ll only pay a portion of what you owe to your creditors, leaving your remaining debts to be discharged at the end of the bankruptcy process.
For a Chapter 13 bankruptcy, that will often be 3-5 years after originally filing your bankruptcy.
Since a Chapter 13 bankruptcy filing requires you to make consistent payments to your creditors, if you’re struggling to pay off your credit card debt, you may have trouble making payments to your creditors. It’s important to evaluate your options before deciding to file for bankruptcy, and before choosing the chapter of the bankruptcy code that you want to file under.
What Credit Card Debts Can Bankruptcy Erase?
Since credit card debts are usually dischargeable, bankruptcy can erase almost all credit card debt. There are some exceptions, however, which may make your credit card debt ineligible for discharge.
What Credit Card Debts Can Bankruptcy Not Erase?
You may not be able to have your credit card debt discharged if you accumulated debt due to fraud. Making large luxury purchases in the weeks before filing for bankruptcy can be considered fraud. If you are wrongfully accused of fraud, your attorney can demand proof of the alleged fraud and help ensure that the debt is discharged.
Additionally, if you accumulate credit card debt after purchasing something valuable, like gold jewelry, your bank or credit union may claim that valuable item as collateral. While this rarely happens, if your creditor claims your property as collateral, you could have that property seized and liquidated, which can make it difficult for you to get it back.
Your Orange County credit card debt attorney at Marshack Hays Wood can help advise you on what to do and what to avoid in the days, weeks, and months leading up to your bankruptcy filing.
What Debt Collectors Can Do
After filing for bankruptcy, debt collectors are very limited in what they can do. If you are found to have committed fraud before filing for bankruptcy, or if your debt is not discharged, a debt collector may be able to continue making collection efforts after the bankruptcy process is completed.
What a Debt Collector Cannot Do
Debt collectors are not allowed to continue any collection efforts or take any legal action against you during the bankruptcy process, This means that aggressive debt collectors cannot make phone calls or send text messages to you requesting payment while your bankruptcy filing is ongoing. They also cannot file a lawsuit against you regarding the unpaid debt.
Additionally, they cannot attempt to collect on any discharged debts after your bankruptcy is complete. If your debt is discharged, and a debt collector attempts to collect on a previously discharged debt, you should contact your bankruptcy trustee, who will send them an additional discharge notice.
Do I Have to Keep Making Payments on Credit Cards After Filing for Bankruptcy?
No, you do not have to continue to make payments to your credit card company once you’ve filed for bankruptcy. In certain cases, if you want to stay in good standing with a specific bank or credit union and keep your credit card, you can enter a reaffirmation agreement and agree to pay off your credit card debt. However, this may not be in your best interest, and it may be more beneficial to apply for a new credit card rather than attempt to keep your old one.
How Will Filing Bankruptcy Affect My Credit?
One of the major downsides to filing for bankruptcy is the effect it can have on your credit score. Bankruptcy can lower your credit score and stay on your credit report for 7-10 years. An experienced attorney can help you find the best solution for your debt, which may include non-bankruptcy workouts and other debt settlement alternatives.
Contact an Orange County Credit Card Debt Attorney at Marshack Hays Wood Today
Being in credit card debt can be stressful and frustrating, leaving you feeling hopeless and even embarrassed. On top of that, debt collectors can engage in bad faith practices to try and get you to pay off your debt. Luckily, an Orange County credit card debt attorney at Marshack Hays Wood can help you find the best solution to your debt problems and even provide you with legal defense in the event your creditor files a lawsuit against you.
At Marshack Hays Wood, we proudly provide legal services to the residents of Orange County, California, and the surrounding areas and can help you on your journey toward becoming debt-free. Call us at (949) 333-7777 or contact us online and schedule a free consultation with a member of our team.
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