Call for FREE Consultation!

Raleigh Bankruptcy Attorney

Nearly 100 5-Star Google reviews!

(click here to go to our Google Reviews)

(nearly 20 years with NO complaints – click here to go to our BBB® page)

Sheree is in the Top 3.9% of ALL Bankruptcy Attorneys. Nationwide (click here to go to NC Bar)

Voted Top Bankruptcy Lawyer in Raleigh for 2022, 2023, & 2024
(Click Link)

Credit Card Debt

Credit Card debt in Bankruptcy

Credit Card Debt

We can help with Credit card debt. There are seven ways to get out of this debt.

1) Lower Your Interest Rate

All you have to do is call your card company and ask to lower your rate. Tell them you have been a loyal customer for X years and have been paying off your balance regularly. Also tell them you have been offered a low interest credit card and are thinking of a balance transfer. Be nice. This will help, but still won’t get rid of the debt.


2) Balance Transfer

Do a balance transfer to a lower interest card. This still won’t get rid of the credit card debt.


3) Consolidation Loans

These are generally a bad idea because your unsecured debt becomes secure debt and they can take your house if you get behind. This will lower your interest, but not your debt.


4) Paying Down Credit Card Debt

Paying down credit card debt. If you get behind on your cards, the interest rate jumps up to 29%. You are charged over-limit fees and past due fees. It goes into collections and ruins your score if you can’t pay it off on time.

5) Settling Credit Card Debt

Settling Credit Card Debt. You May be able to negotiate a flat one-time amount to settle your debt. Not every company will do this.

  • you need to be six months behind on your payments
  • you may get fifty cents on the dollar that needs to be paid in a lump sum.
  • The IRS will tax you on the amount forgiven

How to Negotiate Credit Card Debt

You can pay a company to do this for you. Unless you are very unmotivated, this is generally a bad idea. They charge a lot and often drag things out so they can be paid more money. You can do it yourself by emailing the creditor and making an offer. That is it! Make sure you have all the details in writing

6) Wait

You can wait 3 years AFTER the LAST PAYMENT until you can win in court for the debt. After three years you can use the defense of the Statute of Limitations and win. The problems are

  • People are often not notified of court although they are supposed to be notified.
  • The creditor will often get a judgment before the three years are up, prohibiting this defense. It will also stay on your credit report for 10 years and is renewable.
  • If the creditor does get a judgment, it can attach to your house and they can garnish your wages and bank account.

7) Bankruptcy

  • Bankruptcy is not nearly as bad as its reputation. Banks and health care providers hate bankruptcy so they actually fund and own companies that actively discourage bankruptcy.
  • Bankruptcy will get rid of bank card debt and usually will actually raise your credit score! It is relatively painless and if you qualify for a Chapter 7 it is generally quick. People are generally offered new cards immediately after filing because the banks know you can’t file bankruptcy again for some time. You can generally buy a new car immediately after filing bankruptcy, call or email us for the details.
  • The downside of bankruptcy is you will have to start fresh. It will be a little difficult to rent a home, and you may have to wait a couple of years to buy a house. A bankruptcy will stay on your credit report for seven to ten years, but the further you go from the filing the less it affects you.

In Conclusion

There are four different ways to handle your credit card debt. All have positive and negative elements. It is our opinion that if you owe more money than you can pay back, you should consider bankruptcy.