By: Darrell Castle
You can get rid of almost ANY debt through Chapter 7 bankruptcy, including credit card debt
What debts can you get rid of through Chapter 7 bankruptcy?
Hi, I’m Darrell Castle and I’m an attorney licensed to practice law in the state of Tennessee, and the answer to that question is – almost ANY debt, given your situation. Your decision-making goes into what debts you can get rid of.
But let’s talk for a minute about credit card debt – the most common one. The biggest problem people seem to have right now is credit card debt they just can’t seem to pay back. That is dischargeable in Chapter 7 – you can be rid of credit card debt quite easily through Chapter 7.
The way credit card collection works if you can’t pay those debts is they usually threaten you, call you, have a collection agency call you. Eventually, if you’re unable to pay, they may just file a lawsuit.
They have to file a lawsuit in order to take out a wage garnishment because they have to have their debt made into a judgement. That’s just a piece of paper from a judge ordering the debt to be deducted.
Once that happens – once the judge issues the judgement – they can send that judgement to court and get an order of garnishment sent to your employer. Your employer will then start taking 25% of your pay if it’s in this jurisdiction of Tennessee and send it to your creditors. So you don’t want to let that happen.
In Chapter 7, you can be rid of all those credit card debts – you can discharge them all very quickly. It’s a very fast process. Your part of it can be done in 30-40 days and then there will have to be some time for discharge.
Essentially, your debts will be completed then and you’ll get an order of discharge and be free of them. That’s how credit card debt works in Chapter 7.
There are many other debts we need to talk about. There are many ways that Chapter 7 can help you. But being free of the debts and the financial problems that plague you – that plague your life, that cause you to lose sleep, that keep you up at night, that make your life miserable – those can usually be alleviated through Chapter 7.
We’ll look through some of the other ones in the next video, folks.
Whether you’re considering a Chapter 7 or a Chapter 13 bankruptcy, you need bankruptcy lawyers Memphis, TN respects, and that’s exactly what you’ll find at Darrell Castle & Associates.