Phoenix Credit Card Debt Attorney

Helping Eliminate Your Credit Card Debt in Arizona

Many individuals arrive at the decision to file for bankruptcy on account of significant credit card debt. Before you file for bankruptcy, you should understand how the different chapters can affect your financial future. At Leonard V. Sominsky, ESQ., PC, we can help you make an informed decision as you weigh your options in pursuing financial freedom. We have handled well over a thousand cases since our founding in 2000, and we are prepared to help you take an active role in overcoming your debt.

Credit Card Debt in Chapter 7 Bankruptcy

Chapter 7 bankruptcy offers a debtor the opportunity to discharge their debt. During this process, a Chapter 7 trustee pays the credit card debt through liquidation. Afterward, they are relieved of all obligations to pay the remaining balance.

There are only two grounds for which this type of relief may be prevented:

• Fraudulent expenses on luxury goods
• Fraudulent cash advances

If a creditor believes that you have committed either of these types of fraud in the months prior to your bankruptcy, they may file a complaint to dispute your petition. You will then be given the opportunity to respond to their complaint. Our bankruptcy lawyer in Phoenix can guide you through the entire Chapter 7 process, from filing your petition to defending your right to discharge a given debt.

How Chapter 13 Bankruptcy Can Eliminate Credit Card Debt

Where Chapter 7 eliminates most or all debt after liquidation, Chapter 13 is designed to provide the opportunity for repayment of your most important debts. In this form of bankruptcy, your debt will be reorganized to provide the best possible repayment plan over a period of three to five years. Because credit card debt generally has the lowest priority, it will likely be discharged at the conclusion of the bankruptcy.

In the even that you are able to pay a portion of your credit card debt, your debt will be divided between creditors. For example, if you are able to pay off 30% of your credit card debt within a given time period, your payments will be divided so that each creditor will receive 30% of the debt owed them. At the end of the repayment period, your remaining debt (in this example, 70% of the amount owed) will be discharged.

Credit Card Debt Settlement

In some cases, settling your credit card debt may be the best option. But how do you go about securing a favorable settlement? It is important that you don’t try to settle your debt with a creditor on your own. While it may seem simple, it can often lead to confusion, frustration, and continued credit card liability. Instead, you should trust your case to our skilled debt settlement lawyer.