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If you can’t afford to pay off your credit card debt anymore, filing for bankruptcy in Raleigh can be a viable option. Depending on what type of bankruptcy the court grants you, it can allow you to stop making payments altogether and receive a fresh start.
However, you should not take this decision lightly. Several factors will influence your decision to file for bankruptcy, and you should consider each of them carefully.
How much money do you make?
One of the first things you should consider when filing for bankruptcy is how much disposable income you have. If you don’t make a lot, then it’s possible to qualify for a Chapter 7 bankruptcy. This means that you won’t have to make any more credit card payments at all.
If you earn enough money, however, you may be granted a Chapter 13 bankruptcy instead. You will still have to pay back a considerable portion of your debt, but with the Chapter 13 repayment plan, it’s usually much less than the payments you had to make before.
Under the guidance of our Raleigh bankruptcy attorney, it’s possible to negotiate and settle your debt with the credit card company for less than the full balance. But if you’re practically incapable of paying back your debt, then bankruptcy can provide relief.
Are you being harassed or sued?
Credit card companies are notorious for their aggressive collection tactics. This is one of the most traumatic parts of dealing with credit card debt.
Depending on your debt and your income, the debt collection agency or the credit card company may decide that it’s worth it to bring a lawsuit against you. If they prevail in court, they may legally be able to go after your assets or garnish your income to force payment.
If the credit card company is not open to working with you, or there is already a pending lawsuit, then it’s time to consider having our Raleigh bankruptcy attorney to handle your case.
How much property do you have?
The bankruptcy trustee, working under Chapter 7 bankruptcy, can take your non-exempt assets to pay your creditors. Therefore, a Chapter 7 bankruptcy in Raleigh, NC may not be the ideal choice if you own a lot of property.
On the other hand, you may keep your assets under Chapter 13. But take note that you still have to pay back the credit card companies an amount that’s equal in value to your assets.
Should you still make credit card payments if you’re going to file for bankruptcy?
Once you’ve decided to file, you don’t have to continue making your payments anymore. If you’re still on the fence, however, then abruptly cutting off your payments is not a good idea because it can make you vulnerable to lawsuits, harassment, or damage to your credit score.
As your Raleigh bankruptcy attorneys, we understand that filing for bankruptcy is a life-changing decision. Let’s set up a free consultation and explore your options. Call Weik Law Office at 919-845-7877 so we can set up an appointment today.