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Drowning in credit card debt? You’re not alone. In fact, it’s one of the most common reasons why people finally decide to file for bankruptcy in Raleigh. The massive interests alone can keep you in a vicious cycle of minimum payments and ever-growing debt.
A question we get asked a lot here at Weik Law Office is, “Can I stop paying off my credit cards if I file for bankruptcy?”
We understand that this will be a huge weight off your shoulders, and we want that for you. But first, let’s discuss a few things you should know.
How Much Money You Make Will Affect Your Bankruptcy Filing
To begin, the courts will look at your disposable income. You may qualify for Chapter 7 in Raleigh if you don’t make a lot of money, or if you pass North Carolina’s means test. Chapter 7 can wipe out all of your unsecured debts, including what you owe on your credit cards.
If you earn too much to qualify for Chapter 7, however, you may want to file for Chapter 13 bankruptcy instead. AKA the wage earner’s plan, it gives you three to five years to pay back your debts at a rate that’s more affordable for you. After the repayment plan, the rest of your debt is wiped out, and that includes any remaining credit card debt.
Do note that many credit card companies are willing to negotiate and settle your credit card debt for less than the full balance.
Filing for Bankruptcy Will Stop All Harassment from Creditors
Often, the most stressful part of credit card debt is not the debt itself, but how aggressive creditors can be. They will do anything to get their money
This includes harassing you at home and at work. Trying to shame you into paying up by calling up your friends and family. Calling you at all hours of the day. They can even file a lawsuit depending on your debt and income. The pressure and harassment can be downright traumatic.
As your bankruptcy lawyer in Raleigh, NC, we’re happy to tell you about the automatic stay. Once you file for bankruptcy, creditors cannot contact you anymore. You deserve peace of mind as you try to get back on your feet, and the automatic stay is designed to give that to you.
Bankruptcy Will Factor in Your Assets, Too
Under Chapter 7, the bankruptcy trustee can liquidate your non-exempt assets to pay off your creditors. If you have a lot of assets you want to keep, then Chapter 7 may not be the right choice.
Like we mentioned above, you still need to pay back your credit card debt under Chapter 13 bankruptcy in Raleigh, NC. However, you have a greater chance of keeping your assets, including your home and vehicle.
Should you still make credit card payments if you’re going to file for bankruptcy?
No, you can stop paying off the debt after filing for bankruptcy. But if you’re not sure yet, we don’t recommend stopping your credit card payments abruptly. This can make you vulnerable to more harassment and lawsuits.
Get Rid of Your Debt with Weik Law Office
Weik Law has helped thousands of people just like you who are struggling with credit card payments and other debts. We are on your side. Most importantly, expect to be treated with respect and dignity every step of the way.
Contact Weik Law Office today at 919-845-7877 to schedule a FREE consultation with one of our trusted and friendly bankruptcy attorneys.