Summary: Credit card debt can be discharged with Chapter 7 bankruptcy. Credit scores can also improve after filing bankruptcy. Don’t let the worry of property, credit scores, or getting new credit stop you.

Credit card debt is on the rise. Credit card debt is sneaky. Little by little, it can grow out of control, especially where wages are not keeping up with needs. Job loss, medical emergencies, and other temporary catastrophes can also add to credit card debt. If you feel trapped by high credit card debt, medical bills, or personal loans, you need to face the trap you are in. And then figure out a strategy to get free. Sadly, credit card companies usually refuse to work with you by lowering the minimum monthly payment amount or high interest.

Chapter 7 Bankruptcy may be your best option. Bankruptcy can wipe out credit card, medical, and signature loan debt. The instant your case is filed, a court order stops any more harassment. When the creditor harassment stops, you will begin to feel more confident about your future. You can develop a clear vision for your future and improving your credit rating.

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We’ll review your situation with you and discuss options. We streamline our process to make filing bankruptcy as simple as possible and pull your credit report and help you gather needed documents. We offer payment plans to help you be able to afford bankruptcy. Let us help you break through overwhelming debt with bankruptcy. Start by filling out our free bankruptcy consultation request.

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Will I lose any property if I file Chapter 7 bankruptcy?

Most people do not lose any property when they file bankruptcy. Property is protected through exemptions. For example, long-time Texas residents can generally exempt up to 200 acres for a family living in the country, one car per licensed driver, up to 100,000 in household goods, 401k, and of course, a couple of guns.

How bad will my credit be hurt if I file Chapter 7 bankruptcy?

Most people who have a large amount of credit card debt see an improvement in their credit scores within a year of filing bankruptcy. This is because the debt to income ratio improves, late payments stop being reported every month, and everything is no longer maxed out. Bankruptcy does get reported on a person’s credit report for up to 10 years. You can improve your credit score by paying your home and vehicle payments on time and taking out a credit card or two and then paying the card off in full each month. This will help you rebuild your credit.

Will I be able to buy a home or vehicle after I file Chapter 7 bankruptcy?

Getting new credit after bankruptcy will depend on many things:

  • Income amount sufficient to cover expenses and the new credit
  • Length of time on the job
  • Type of wages, such as self-employed v. W-2 worker
  • How much other debt you have

Most people with stable jobs and sufficient income easily qualify to finance a vehicle. Qualifying to buy a home will take longer. Buying a home is generally a two-year wait after filing depending on the financing you qualify for.

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