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This New Year, resolve to eliminate your credit card debt

On Behalf of | Dec 13, 2016 | Chapter 7

With the New Year quickly approaching, it is a good time to start thinking about possible New Year’s resolutions. However, while many people pick resolutions aimed at improving their physical health – going to the gym, eating better, etc. – you may want to consider a resolution that will improve your financial health instead – such as eliminating your credit card debt.

Even though there are many ways to get rid of credit card debt, probably the most effective option is bankruptcy. In fact, not only can bankruptcy help you discharge (eliminate) credit card debt but many other forms of debt as well, including medical debt.

Discharging credit card debt in Ohio

During a Chapter 7 bankruptcy, you can typically discharge all unsecured debts, including credit cards debts – meaning you will not be responsible for paying back your credit card bills.

However, it is important to remember that there are some exceptions to this rule. For instance, if the credit card company thinks you fraudulently ran up charges on your credit cards, it may ask the bankruptcy court to make your credit card debt non-dischargeable – meaning you may have to pay back some, or all, or your debt. Some possible examples of fraudulent behavior include:

  • You lied on your credit card application
  • You purchased “luxury” goods on your credit card within 90 days of filing for bankruptcy
  • You took out a large cash advance on your credit card within 70 days of filing for bankruptcy

When determining whether fraud is present or not, a court may consider many factors. Given the complexity of this process, it is always best to have an experienced bankruptcy attorney in corner. A skilled lawyer can explain your legal options and help you obtain the fresh start you need.