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People use credit cards for different reasons. For some, credit cards are used for pre-determined expenses (like filling up the car with gas) and paid off every month. For others, credit cards are used almost exclusively for spending as a way to accumulate rewards points that they can use for travel or other amenities. And for others still, credit cards are for emergencies only, pulled out and used only in the direst situations.
Whichever category you may fall into, if you’re reading this website, your credit card usage has resulted in a debt that has affected other aspects of your life. Ask yourself a few simple questions
If you answered yes to any of the above questions, bankruptcy may be the right option to help you relieve the pressure of overwhelming credit card debt.
Credit card debt can feel overwhelming, but an experienced Fort Collins bankruptcy attorney may be able to help you achieve a fresh start through a Chapter 7 or Chapter 13 bankruptcy. During your free case consultation, our knowledgeable Larimer County debt relief lawyers will provide you with the legal advice you need to make the best decisions for your financial future.
Having worked with hundreds of Larimer County residents seeking debt relief through bankruptcy, we want to let you in on a little secret– credit card rewards are a (totally legal!) scam.
Credit card debt is one of the largest driving forces for Fort Collins residents to seek debt relief through bankruptcy. And we have noticed an alarming trend of these new clients informing us that they signed up for these credit cards for the perks, and then got in over their heads with the balance trying to chase the rewards.
And while credit card reward programs are legitimate, most people who sign up for these cards overlook more important elements, like APR and annual fees because the rewards themselves are the goal.
There’s nothing wrong with wanting to enjoy the amenities that come with your credit card. The problem lies in using your credit cards for everyday purchases to quickly accrue rewards points, causing you to rack up a big monthly balance that many Fort Collins residents may struggle to pay off.
We want to let you in on another secret that credit card companies don’t want you to know– They count on their customers only making minimum credit card payments. Interest accumulating on your balance is how these companies make money, after all.
If you’ve amassed a large credit card balance that you’re struggling to pay off, bankruptcy may be a viable option for you. We have helped hundreds of Larimer County residents who have fallen into debt chasing credit card rewards, and our Fort Collins bankruptcy attorneys are standing by to help you find financial freedom from credit card debt.
The consequences of defaulted credit card debt can be severe. It may start with letters or the occasional phone call, but credit card companies are the first to file lawsuits if they feel like their debts aren’t being paid quickly enough. Eventually, that lawsuit will result in a judgment. With a judgment, your creditor can then garnish your wages.
Further, when one defaults on credit cards, the negative monthly reporting can severely damage your credit rating. Ultimately, a damaged or poor credit rating can affect almost every aspect of your life.
For example:
Credit card debt is an issue that plagues so many Fort Collins residents, especially during these difficult economic times. What starts as a few missed payments can turn into annoying collection calls, which eventually turns into legal actions by the credit card company or a third-party debt collector, which can cause your paychecks to be garnished. That kind of stress can crack even the most even-keeled person.
Bankruptcy can lift a great weight off your shoulders and give you a new start. Many people can rebuild their lives with better financial practices and more understanding of their finances after filing for bankruptcy.
Chapter 7 bankruptcy is the most common form of bankruptcy petition in Colorado and is frequently referred to as “liquidation bankruptcy” or “simple bankruptcy.” When you file Chapter 7 in Fort Collins, all of your non-exempt property can be sold by a court-appointed bankruptcy trustee to partially or fully satisfy your debts.
However, given the very generous exemptions available to Coloradans the vast majority of Chapter 7 filings are “No Asset” cases, meaning the Chapter 7 bankruptcy trustee liquidates nothing. Following the trustee’s administration of the Chapter 7 case, most unsecured debts are discharged, or wiped clean. And just to really bring the point home, what is the most common type of unsecured debt in bankruptcy cases filed in Larimer county? If you answered credit card debt, you’re correct!
The other personal bankruptcy filing available to individuals seeking debt relief is Chapter 13 bankruptcy, also known as a “wage-earners bankruptcy.” Chapter 13 works a little differently than Chapter 7 to discharge unsecured debts like credit card debt. Chapter 13 bankruptcy offers certain benefits such as property protection and debt discharge in exchange for a promise to pay back all or a portion of your debts through a court-approved payment plan.
Chapter 13 does not necessarily require full repayment of all debts — only past-due secured debts and priority debts, such as child support or recent income taxes must be paid in full. The amount you repay is based on your financial situation, including your income and the amount and type of debt you owe. At the end of your repayment plan, any leftover unsecured debt is discharged or erased.
Don’t waste another day buried by credit card debt. If you would like more information about how Chapter 7 or Chapter 13 bankruptcy can help you erase your credit card debt, contact one of our experienced Fort Collins bankruptcy attorneys today for a free case consultation.
Filing for bankruptcy in Fort Collins can be a complex undertaking, and it’s important you work with a Larimer County bankruptcy attorney that understands what is at stake and what strategies need to be implemented to protect your interests. Our team of knowledgeable Fort Collins debt relief lawyers takes a personalized approach when working with our clients.
We understand that when you’re in such a stressful situation, you need someone on your side to walk with you throughout the entire bankruptcy process. Whether you are feeling the strain of overwhelming bills, facing foreclosure, garnishments, repossession of your vehicle, or overwhelming credit card debt, we are here to help.