Credit Cards and Bankruptcy

Alabama Bankruptcy Attorneys helping discharge credit card debt in Dothan, Hartford, Rehobeth, Columbia, Daleville, Ozark, Enterprise, and the rest of Southeast Alabama

Credit card debt is a common catalyst that forces people into bankruptcy in Alabama. Interest piles up as debtors find themselves unable to make more than the minimum credit card payment month after month, and soon they are seemingly left with nowhere to turn. Credit card debt is the main source of unsecured debt in bankruptcy, and after a Chapter 7 liquidation of the debtor’s assets, the unsecured creditors line up for their “ten cents on the dollar,” a pro rata distribution of the proceeds of the debtor’s eligible property. Under Chapter 7, any debt remaining is dischargeable; under Chapter 13, the remaining debt must be paid under a court-approved repayment plan.  Often, discharge under Chapter 7 is the best option for a debtor facing mounting credit card debt. However, a bankruptcy filing show up on a debtor’s credit rating for at least 7 years after the discharge, making future credit harder to come by and more expensive to obtain.  However, despite what you may have heard, there is in fact “life after bankruptcy.”

If your credit card debt is getting out of control and debt collection agencies are harassing you with an endless barrage of nasty phone calls and strongly-worded letters, you have options. Our experienced bankruptcy attorneys can assist you on matters both inside and outside of bankruptcy, and advise you of your options so that you can make the best choice moving forward. Our Dothan Legal Team includes experienced bankruptcy attorneys with specialized expertise in helping our clients work through the difficulties of obtaining effective debt relief solutions.  Let us put our experience to work for you today – call us at 334-792-1900 or email us for a consultation.