After the colossal financial collapse in the US many people have incurred insurmountable amount if debt. In such situation, filing bankruptcy can help you eliminate your credit card debt. But you might not be able to discharge your student loans, child maintenance and alimony on filing bankruptcy. Your debts will be discharged once you have made your scheduled payments under your 3-5 year repayment plan in a Chapter 13 or immediately for a Chapter 7. But remember declaring bankruptcy can damage your credit rating for 7 to 10 years. Therefore, you should investigate the possibility that you could merge your debts into a low interest loan to pay off your debt for a manageable amount to avoid blemishing your credit report.

What is bankruptcy?

Once you declare bankruptcy then you can avoid collection calls from the collection agencies and easily discharge your debt. When you file bankruptcy your non exempt property will be sold by the trustee. This fund will be used to pay off the debts and the remaining liabilities will be discharged.

Can you discharge your credit card debt by declaring bankruptcy?

When you declare bankruptcy then all your obligations along with your credit card debt will be discharged. Bankruptcy discharges your high interest debts and helps you start afresh. If you are thinking whether bankruptcy will be a feasible option for you then you need to evaluate your financial situation. Therefore, this decision will be determined on the basis of your psychological as well as financial state.

Are you struggling to pay off your debts? Then you can take help of a proficient lawyer who deals with similar bankruptcy cases to manage your financial state. The lawyer can guide you through the bankruptcy process and help you handle the complicated paper works.

Before you file bankruptcy ensure that you are aware of the consequences related to bankruptcy. Your credit report will be ruined for 2 to 3 years when you file bankruptcy.

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