Sometimes, credit cards can seem like a lift raft in a stormy sea if you’re trying to establish credit. Or maybe your beloved pet had a medical emergency that you just didn’t have the funds to pay for. Possibly you got an application in the mail for a new card that offers “rewards” that were too tempting to pass up.
You promised yourself that you’d pay off the balance every month, but life happens. Suddenly, you’re struggling to make even the minimum payments, and that high-interest rate is only racking up more and more debt every month.
If you’re faced with overwhelming credit card debt in Colorado, there is hope. If you are in over your head financially, we urge you not to wait another day to get an honest assessment of your situation.
The easiest way to figure out what is right for your financial situation is to sit down with one of our Colorado bankruptcy attorneys. Our knowledgeable legal professionals can review and analyze where you currently stand financially, and provide knowledgeable advice and guidance about the options available for debtors seeking credit card debt relief in Denver and the surrounding areas.
Most people file for bankruptcy in the hopes of having the debts that they are struggling to pay discharged. However, debt discharge for credit cards can work differently depending on the type of bankruptcy you file in Colorado. Individuals seeking debt relief in Colorado have the choice of filing for Chapter 7 or Chapter 13 bankruptcy. An experienced CO bankruptcy attorney can help you figure out which one is right for your personal circumstances.
Another benefit of filing Chapter 7 bankruptcy in Colorado is how quickly you can get your debts discharged. Generally, filing for Chapter 13 bankruptcy (the other popular individual bankruptcy filing in Colorado) can take up to five years from start to finish! If you qualify for Chapter 7 bankruptcy, from initial filing to the discharge of debts can take as little as 3-5 months.
When you file for Chapter 7, you can have most, if not all, of your unsecured debts discharged, which includes your credit card debt. However, in exchange for having these debts wiped out, your non-exempt property could be sold by the bankruptcy trustee, and the funds will be used to pay off your creditors. Colorado has generous exemptions for residents seeking debt relief through bankruptcy, and a skilled Colorado bankruptcy attorney can help you figure out what assets you own are exempt from liquidation.
Filing for Chapter 13 works a little differently. With this type of bankruptcy, your credit card debts are generally not discharged upfront. Instead, you are given a more affordable payment plan that allows you to pay off your creditors with a monthly amount that is more suitable to your financial situation. During this repayment plan, which lasts from 3 to 5 years, creditors are no longer allowed to contact you about paying off your debts, so the extra burden of harassing phone calls, letters, and e-mails is lifted so that you can focus on paying down your credit card debt.
If you’re struggling with credit card debt, you may be considering bankruptcy as a way to get a fresh start. However, the bankruptcy process can be complex and confusing, so you probably have a ton of questions. You are not alone. Listed below are some of the most commonly asked questions about credit card debt, answered by our experienced Colorado debt relief attorneys.
The “Statute of Limitations” for credit card debt is a law limiting the amount of time lenders and collection agencies have to sue consumers for nonpayment. There is a set amount of time for different kinds of debts to be collected, and in Colorado, the statute of limitations on credit card debt is 6 years.
It’s important to note that the statute of limitations on credit card debt should not be seen as a “get out of jail debt-free” card. The debt doesn’t expire simply because it wasn’t collected in the time frame set by state law. You, the debtor, still owe it, and debt collectors have a right to pursue it and make negative reports about it to the credit reporting bureaus. So yes, you are legally required to pay back credit card debt.
Maybe. Whether your credit card debt is discharged is dependent upon whether you file for Chapter 7 or Chapter 13 bankruptcy. Because credit card debt is unsecured, it will automatically be discharged if you file chapter 7 bankruptcy, but if you file chapter 13 bankruptcy in Colorado, your credit card debt will be made a part of your debt repayment program.
NO! Maxing out your credit cards when you know that you’re about to file for bankruptcy is considered fraud. The defrauded creditors could object to your discharge. If that happens, the court may allow the defrauded creditor to collect some or all of the credit card debt or, worst-case scenario, dismiss the bankruptcy case completely.
Of course, every person filing for bankruptcy in Colorado is dealing with unique circumstances. These are just simple answers to general questions commonly asked about the federal bankruptcy code. If you’d like more information about credit card debt relief, please contact our experienced Colorado bankruptcy attorneys.
The hard truth is, that the way the current debt system is set up is meant to keep you in the hole. People in debt are a cash cow for credit card companies because interest rates are so high that all you are doing is paying off the interest in most cases. While you struggle to make minimum payments on your credit cards, that high interest keeps accruing. And by the time you pay off your credit card debt, if you’re ever lucky enough to be able to pay it off, you’ve probably paid four or five times the value of the items you used that credit card to purchase.
If you’re crushed in an endless cycle of only paying minimum payments on high credit card debt, you may want to consider filing for bankruptcy.
Bankruptcy is not right for everyone. To find out if bankruptcy is the right debt relief option to get you out of overwhelming credit card debt, contact our Colorado debt relief attorneys. We offer free case consultations to every prospective client so that you can get to know us, and we can learn the details of your case and offer you the best options for debt relief. To discuss your bankruptcy needs with an experienced Colorado bankruptcy attorney, contact our bankruptcy law firm today.
We serve clients all over the state, including the following counties and cities:
