August 14, 2009
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CC Debt Settlement Advice amid the Myer in TX, Pt.4
Do not pass "Go"; Do not collect $200.File for Bankruptcy: If you're still reading this, you're reaching the end of the line. It used to be that filing Chapter 13 could relieve a person of an entire credit card debt almost automatically. During the "George W" era, all that changed. These were times where bankruptcies reached rates our forefathers never dreamed of. It started with medical bills which quickly became the number one cause for personal bankruptcy in the country. With the medical care system that we still have, it can only ever spiral out of control with a vocal population that won't care until it affects them personally. Not because things have improved in the medical but, because they have been eclipsed by credit card debt, you may be just another minor statistic of the number one cause of personal bankruptcy today. That would be credit card debt bankruptcy. You no longer escape paying the credit card debt back but you do bear the brunt of having your credit destroyed for seven years with a "Bankrupt" black mark.
With that said, Chapter 7 does, in many cases, erase the credit card debt completely. The catch is, of course, "Chapter 7"s are more difficult to obtain from the courts. For credit card debt they always prefer the Chapter 13 for obvious reasons. If your case is extreme enough, you may be able to obtain a Chapter 7. Consider that, with Chapter 7, it's possible to lose your house (though this is rare).
With Chapter 13, you will be treated much the same as you would by just letting a credit card counseling agency take control of your finances. The biggest difference is that one is court-ordered and the other is not. You will be paying an appointed trustee monthly in any case. They are both repayment plans. It's always best consult an attorney before making a decision like this.