Unfortunately, credit card debts have a tendency to snowball out of control. If you miss a minimum payment on your credit card bill, interest rates can skyrocket – shooting up from 13 percent to 26 percent or more. This significant increase creates unmanageable bills that often result in a devastating amount of debt.

Many times, people will forgo their mortgage payments in order to make their credit card payments on time and avoid further interest rate increases. When this happens, they run the risk of losing their properties to foreclosure.

You do not have to be a victim of unmanageable credit card debt. By filing for Chapter 7 or Chapter 13 bankruptcy, you can regain control of your debts and rebuild your credit standing before you lose your home. Contact the compassionate legal team at Bankruptcy Attorneys, PLLC for a free consultation at one of their meeting locations in Kirkland, Seattle, Bellevue, Tacoma,  Bremerton, or Everett, at 425-289-9873.

How Chapter 7 Affects Your Debt

Chapter 7 bankruptcy, also known as liquidation bankruptcy, eliminates your credit card debt. This bankruptcy option exonerates all your unsecured debt, such as credit card and hospital bills.

Not everyone qualifies for Chapter 7 bankruptcy. Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, extensive requirements were established for those hoping to file Chapter 7. Some people who formerly qualified to file are now rejected.

To establish whether or not you can file Chapter 7 bankruptcy, contact Tacoma, Seattle, Kirkland, Bellevue, Bremerton, Everett bankruptcy lawyer Ryan Nykamp today at 425-289-9873

How Chapter 13 Affects Your Debt

Chapter 13 bankruptcy is a form of restructuring your repayment plan into a format that you can deal with more easily. After filing, you are given three to five years to repay all secured debts. Many times, interest rates are reduced, so your monthly payments are lowered. Unsecured debts may be decreased or eliminated, but in certain situations they must be paid back in total.

To qualify for Chapter 13, you must have a stable source of income. This is a requirement because your new plan is based upon how much money you make each month. Without a steady flow of money, you will be unable to pay back your restructured debts.

To learn more about how you can file Chapter 13 bankruptcy, contact Tacoma, Seattle, Kirkland, Bellevue, Bremerton, Everett bankruptcy lawyer Ryan Nykamp today at 425-289-9873.

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Filing for bankruptcy will give you federal protection against creditor harassment, wage garnishments, foreclosure, and repossession. Credit card companies are also required to accept the terms of your new repayment plan. No other credit counseling plan offers you this kind of security.

If you would like to learn more about how filing for Chapter 7 or Chapter 13 bankruptcy can eliminate or reduce your credit card debt, contact the compassionate legal team at Bankruptcy Attorneys, PLLC for a free consultation at one of their meeting locations in Kirkland, Seattle, Bellevue, Tacoma,  Bremerton, or Everett, at 425-289-9873.