Eliminating Credit Card Debt via Chapter 7 Bankruptcy

One of the most common ways in which people become overwhelmed with unmanageable debts is through credit card use. Frequently, credit is deceptively easy to obtain, and predatory lending rates can leave you in a debt situation where your debt grows at a faster pace than your ability to pay it off.

Fortunately, bankruptcy law provides a way out for debtors who are in over their heads and unable to sustain their financial independence. Chapter 7 bankruptcy may allow debtors to discharge all of or the majority of their debt while still retaining much if not all of their property, giving these individuals a fresh start without the crippling limitations of overbearing debt payments and the constant hounding of creditors. To learn more about this process, contact an Arizona bankruptcy lawyer with the Harmon Law Office, LLC, today by calling 480-829-0494.

Non-Dischargeable Debt

In certain situations, your credit card debt may not be eligible for discharge. These rules are in place to prevent abuse of the bankruptcy system and not to limit available aid for those in true financial distress. If you have accrued debt in the following ways on your credit card, it may not be possible to have it discharged by filing for Chapter 7 bankruptcy:

• Luxury purchases – Any goods that the court deems are not “reasonably necessary for the support and maintenance” of you and your dependents qualify as luxury goods. While food, clothing, and basic housewares and supplies will qualify, many other purchases will not. If you have purchased over $600 of luxury goods on credit in the 90 days before filing for Chapter 7, you will likely not be permitted to discharge the debt.
• Cash advances – Any cash advance taken out in the 70 days prior to filing for Chapter 7 that exceeds $875 will likely not be eligible for discharge.

For many, these exceptions will not be an issue and Chapter 7 bankruptcy will be able to remove your credit card debt successfully.

Contact Us

If you are struggling with oppressive credit card debt, Chapter 7 bankruptcy may be the answer you are seeking. Contact a skilled Arizona bankruptcy attorney with the Harmon Law Office, LLC, today at 480-829-0494 to schedule an initial consultation to discuss your legal options and get the help you need.