Bankruptcy and Credit Card Debt

Bankruptcy and Credit Card Debt

As a bankruptcy attorney in Arizona, one of the most common problems I’ve seen in the hundreds of bankruptcy cases I’ve handled is credit card debt.

I would estimate that in 9 out of 10 cases I handle, there is a significant amount of credit card debt owed (anywhere from $10,00 to $100,000). It’s nearly impossible for the person/couple to pay off these cards, because of a changed financial situation and the high interest rates that a lot of credit card companies charge.

I often wonder how credit card companies expect people to ever pay off a card at a 20% – 30% interest rate, which is often times the rate I see. It just doesn’t make sense. (I often also wonder why the creit card company recklessly allowed such credit).

When a client has a significant amount of credit card debt, and other non-secured debts (e.g. personal loans, medical debt, etc.), I first see whether or not the client, based on their income and family size, will qualify to file for Chapter 7 bankruptcy protection.  Chapter 7 bankruptcy, virtually wipes the slate free of credit card debt, and other non-secured debt. It is a “one and done” filing, and not a re-payment plan like Chapter 13 bankruptcy.

Chapter 7 is perhaps the most useful tool someone with primarily credit card debt, or other unsecured debt, can use to discharge their debt, and start over again.

If you have a lot of credit card debt, you don’t have to work the rest of your life to pay high interest rates. You have options. Here at the Yontz Law Group, we are more than happy to meet with anyone to explain their options. Contact an experienced Arizona Bankruptcy Attorney here.

Contact the Yontz Law Group, for a free consultation with a bankruptcy attorney in Phoenix, Mesa, Gilbert, Apache Junction, Chandler, or throughout the state of Arizona 480-355-1377.