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Chapter 7 may be the last resort to get out of credit card debt

| May 8, 2020 | Chapter 7 Bankruptcy

It can be so easy to simply charge purchases to a credit card, but that debt can quickly add up. Anyone can find themselves overwhelmed by it. If you feel buried in credit card debt and are unable to make payments and have tried everything but still can’t manage to pay down the debt, then you might be faced with only one solution — filing bankruptcy.

Chapter 7 bankruptcy can be a good choice because at the end of the process, the court discharges — or erases — your unsecured debts, including debt from credit cards. The bankruptcy also discharges medical bills and many personal loans. Generally, Chapter 7 can do away with all these unsecured debts, although there can be some exceptions.

Some categories of unsecured debt that are typically not discharged, however, include alimony and child support payments. Court fees, any unsecured debts that you might intentionally not include in the bankruptcy filing and a few other types of debts will not be erased after the discharge.

A credit card company can fight your bankruptcy and insist to the court that you still pay the debts you owe, but this is a rarer exception that would come into play if you, for example, racked up a lot of debt on luxury buys like fancy new cars and exotic vacations shortly before filing bankruptcy. In that case, the court might very well consent and force you to have to repay that part of the debt.

If you are facing overwhelming credit card debt and see bankruptcy as your only option, it’s important you talk to an experienced Oklahoma lawyer who can walk you through the process and get you the fairest treatment possible under the law and, hopefully, a more secure financial future.