Can Filing Bankruptcy Help You Eliminate Credit Card Debt?

If you are one of the thousands of Americans struggling with job loss and unable to pay creditors back, think twice about filing bankruptcy. At the same time, it might seem like the answer to “will by filing bankruptcy start over” is not as clear-cut as you might think. There will be Larry Merchant, Donald Trump, Dave Ramsey, and the host of the hit show”The Office” who will be begging you to file bankruptcy. I was on this show back in September of 2007. I have since moved toSaintport. In that time I have cooked a WH allegedly right out of a piggy bank and built a 9/11 statue out of the earnings from it. This piggy bank has been the source of 24 percent unemployment and over 1 million newly unemployed people since the Stimulus Package began. When your 2010 Stimulus Package starts going into effect, the banks are still able to collect on their debit card debt. Another stimulus in 2010 will allow you to keep your credit card debt, but bankruptcy will not wipe it out. It’s no bargain for the creditor. If you charged unethical debt, it’s still considered debt in bankruptcy. That’s why they are so upset. Now let’s examine bankruptcy to evaluate its morality of it.

Now the credit card companies do not want you to wipe out (discharge) your debit card debt by filing bankruptcy. That would require them to get a big piece of the pie (your profit) which they might not have. In Figure C of the Fair Debt Collection Act, you’ll notice where it says that if a credit card company sues you in federal court and wins a judgment against you, it goes back to the credit card company, not to the credit card company. This is just one facet of the legal system that the banks have put into play to prevent people from being discharged by filing bankruptcy and then walking away from their legal obligation of paying back a loan. Now ask yourself, do the banks benefit? You bet they do. That’s why they have been large financial contributors to both political parties.

Back to the question at hand, and that is, “Will by filing bankruptcy, I start over?” I have said from the perspective of a bankruptcy attorney that sure it will stop the harassment and give Citizens assured a fresh start; Guess what? It will also put a time stamp on it so it will be fresh off of the Post Office. But let’s get back to some issues that started this whole discussion. Any of you who have ever experienced your finances tightening down and fear a credit card company coming after you, it may be worth your time to speak to a bankruptcy attorney and have them give you the free credit counseling. If you’re in trouble with your credit card debt, there are minimum payment programs you can follow to get your credit back on track. Just do not hire or go with a company that requires you to send them any money before they give you the counseling. Pre-approved cards you can receive while you are in the process of getting credit counseling will do the same thing. However, they do not work like a consolidation loan. They do put you in a better negotiating position to work on your debt balance. While most people think it is a good idea to file bankruptcy and start over, doing it all at once may mean you are trying to screw up too big to fix. Start with one card at a time and work your way down, and surely, you’ll be going down a debt-free path.