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Credit card offers seem to arrive each day in the mail. And they offer such sweet deals. Go to a retailer and they will give you a 10% discount if you will sign up for a credit card and use it for your purchase. It is no wonder that a lot of people have large amounts of credit card debt. For some people the amount gets to be so large and difficult to pay that they begin to think of filing credit card bankruptcy. It sounds so simple, but is it?

First, there is no such thing as credit card bankruptcy. There are two types of personal bankruptcy – Chapter 7 bankruptcy and Chapter 13 bankruptcy. Whenever you file for either of these types of bankruptcy, you must list all of your debts – credit cards, mortgage, medical bills, car loans, etc. You cannot simply select which debts you want to list. By federal law, you must list all of your debts.

Next, there are generally two types of credit cards that consumers use. There are the standard, multi-purpose, multi-location type of cards. These are primarily the master card(tm) and visa(tm) type of credit cards. The second type are the store credit cards which are designed to be used only in a specific company’s stores. A good example of this is a Sears credit card.

There are also two types of debt – unsecured and secured. Most of the time when the multi-purpose, multi-location type of credit cards and store credit cards are used, they create unsecured debt. This means that you did not put anything up as collateral for the credit card loan with which you make the purchase. However, with some store credit cards, when you purchase durable goods, such as appliances, jewelry, etc., the store will retain a security interest in the items that you purchased. This means that if you do not pay the credit card debt for the item, the store can seek repossession of the items that you purchased.

If your credit card debt is primarily from the multi-purpose, multi-location type of credit cards and is unsecured debt, then filing bankruptcy under Chapter 7 may be your best bet because it will discharge unsecured debt. Of course, you must consider all factors because you could lose property in a Chapter 7.

If your credit card debt is primarily from the store type of credit card where the store retains a security interest in the items purchased, you can try filing bankruptcy under Chapter 13. Depending on a number of factors, you may be able to pay for the value of the items instead of the original price of the items.

It is important to remember that when you file bankruptcy, you file against all of your creditors, not just against credit cards. It is also important to remember that personal bankruptcy has disadvantages such as possibly losing property and long term negative affects on your credit. Filing bankruptcy should not be taken lightly. Consider all factors and not just your credit card debt.

This is general information. If you need specific information or have any questions of any nature whatsoever, talk with a lawyer licensed in your state.

This article may be republished, but the wording must not be changed and the author links must remain active.

Claiming maximum benefits under Chapter 7 & 13, for low cost, is easier than you now think. Find out how the pros use their options wisely and beat creditors at their own game.

Bankruptcy Strategies

Stop! Did you know that bankruptcy was created to give people a fresh start? Find out more at bankruptcy information. And click here for more insights on credit card bankruptcy.

Claiming maximum benefits under Chapter 7 & 13, for low cost, is easier than you now think. Find out how the pros use their options wisely and beat creditors at their own game.

Bankruptcy Strategies

Bankruptcy is an option for those who find themselves in debt so far over their heads, they will never see financial daylight. There are many things to consider, ie, a chapter 7 total liquidation or a chapter 13 reorganization of debt and whether you want to do it yourself or hire an attorney. Before you make a decision, there are some bankruptcy questions you need to look at. We have compiled a list that our attorneys are most frequently asked.

Before 2005, filing bankruptcy was not a big deal. Even though the bankruptcy laws have gotten stricter there are still do-it-yourself bankruptcy packages available. You may find yourself faced with bankruptcy questions that you will very likely not be able to answer. This could be very detrimental to your situation.

The new bankruptcy code is stricter and more inhibitive than ever before. Filing bankruptcy on your own is not as easy as it once was, but it is still doable using many online services. many services incorporate high-tech software that helps you fill out the bankruptcy documents and upon completion you can print them and file them with the court.Some courts even allow you to submit your bankruptcy forms electronically.There is a wealth of information available on the web about the new bankruptcy laws and how they could affect your situation.

Even though these laws have become complex, bankruptcy questions are definitely going to pop up somewhere along the way. If you decide to do it yourself you should probably look in to one of the low cost online services to help you. They should be able to answer questions regarding debts that might not be able to be discharged and other questions that arise about your personal financial situation.

TOP 10 BANKRUPTCY QUESTIONS

1. What is Bankruptcy?

This is one of the most common bankruptcy questions. There are a number of myths about bankruptcy and as a result many people misunderstand the process of filing for bankruptcy. Essentially, bankruptcy is a type of legal proceeding in which you legally declare that you are not able to pay all of the money that you owe. It grants consumers a fresh financial start while also providing the opportunity to potentially repay creditors in an orderly fashion.

2. What are the Advantages of Bankruptcy?

Bankruptcy makes it possible for consumers to stop foreclosure on their home and provides an opportunity to catch up on payments that have been missed. It may also prevent a vehicle or other property from being repossessed. In addition, bankruptcy can stop wage garnishment and harassment by debt collectors. Bankruptcy can also provide a discharge of debts.

3. What Won?t Bankruptcy Do For Me?

This is another of the most frequently asked bankruptcy questions and it is important to understand that bankruptcy will not cure all of your financial problems. It is not the right choice for everyone, so it should be understood that bankruptcy will not eliminate certain types of debts, especially those that are secured. Secured types of debt include mortgages and car loans. In addition, bankruptcy will not discharge special treatment debts such as alimony, child support, certain student loans, criminal fines and certain taxes.

4. How Often Can You File For Bankruptcy?

It depends on the type of bankruptcy that is filed. You can file for Chapter 7 bankruptcy 8 years after the date of the last time you filed. Chapter 13 bankruptcy can be filed again at any time.

5. What is Chapter 7 Bankruptcy?

Ultimately, the goal of this type of bankruptcy is to discharge your debts. In order to wipe out those debts; however, you will need to give up all non-exempt property. Exemptions will need to be applied and it is important to speak with your bankruptcy attorney ahead of time to determine exactly what property is exempt and which is non-exempt before your bankruptcy petition is filed.

6. What is Chapter 13 Bankruptcy?

This type of bankruptcy gives you the opportunity to legally create a plan by which you will repay your debt. Under this type of bankruptcy, you will pay into the plan on a regular basis. This type of bankruptcy offers advantages over Chapter 7 by helping you to avoid foreclosure, offering a lower cost than Chapter 7, remaining on your credit for fewer years than Chapter 7 and avoiding the confiscation of and sale of property in order to satisfy debts.

7. Who Should Consider Filing Bankruptcy?

Bankruptcy is ideally designed for individuals who feel as though they are overwhelmed by financial problems.

8. Will my Credit be Ruined if I File for Bankruptcy?

While your credit will not be completely ruined when filing bankruptcy, it will remain on your credit report for up to ten years. If you have a regular, decent income you will typically find that you can receive credit even after filing for bankruptcy. Most people find they can still purchase an automobile after filing for bankruptcy and can then begin rebuilding their credit from there.

9. What is an Automatic Stay?

An automatic stay is a restraint that prevents your creditors from taking any subsequent action to collect debts. The automatic stay is filed immediately after your bankruptcy petition is filed.

10. Will My Employer Know I Filed for Bankruptcy?

It should be understood that bankruptcy petitions are public records. Normally; however, your employer will not know you have filed a petition for bankruptcy unless you owe him or her money and they are a creditor.

Getting answers to your bankruptcy questions is an excellent way to determine whether filing for bankruptcy may be the right option for you.

http://DIY4LAW.Com it is a attorney assisted do-it-yourself bankruptcy service. We have online software that gives people an inexpensive alternative to hiring an attorney.