Relief from Credit Card debt through Chapter 7 Bankruptcy

  • credit card debt

Relief from Credit Card debt through Chapter 7 Bankruptcy

Chapter 7 Bankruptcy law in the USA offers people to declare bankruptcy to elicit relief from the debts. The debtor seeks this law when he/she is unable to clear the debts. People may file for bankruptcy when they have little or no assets to clear the debt. The creditor must be content with little or no payment. To know more about bankruptcy and its implication on the debtor and creditor, log on to

How can Chapter 7 help to clear credit card debt?

A client can file a case under chapter 7 when he is unable to clear his credit card debt. The court will only accept the case when it finds no evidence of fraud and any misuse of the law. The court appoints a trustee that examines the debtor’s assets and property which could be sold to pay the creditors. The property if at all is sold at market price to pay the creditors. The debtor, if has no assets to repay the creditor is often given relief from the debt. The debt then falls under discharge and the debtor is free from all debts.

However, the case can backfire if the debtor is found to be engaging his credit card on luxury items after filing the case.

  • Buying luxury goods

The court is vigilant and examines closely the conduct of the debtor. If the debtor is buying anything above $675, within 90 days of applying for bankruptcy, the case can be dismissed by the court. Any goods above $675 fall under luxury consumption and the court does not allow such extravagance by the client. However, any expenditure availed against basic daily consumption of goods like food, clothing, etc. does not fall under luxury usage. The client may buy but must be careful of overindulging after filing the case under chapter 7.

  • Withdrawing money

There could also be a limit to how much money you can withdraw after filing the case. The debt could turn into non-dischargeable if the client withdraws more than $950 within 70 days of applying for bankruptcy. The amount, however, is refreshed with every few years.

The court brings in such rules to prevent fraud and false filling of bankruptcy. To get the best advice and tips for filing under chapter 7, you can visit- Recovery Law Group.

The benefit of the doubt for the creditors

The court ensures that the creditors must also get due justice. While the debtor takes relief under chapter 7 bankruptcy California the creditor gains nothing but a hole in his pocket. The court allows the creditor to file a petition against the debtor. The creditor must file the petition within 60 days of the first meeting if he wants to challenge the debtor.

The debtor, on the other hand, can hold or halt the creditor if he files a timely reply to the creditor’s notice of non-dischargeable. The court then holds a hearing in benefit of both creditor and debtor, each being given an equal chance to prove their case. You can call 888-297-6203, for advice to make your case strong.

Alliances of debtor

When the debtor avails a credit card, he/she needs a guarantor. A guarantor or a consigner is a person who takes the responsibility of the debtor. They are bounded by the contract to repay the debt. When the debtor files the chapter 7 bankruptcy California bankruptcy case under chapter 7 the discharge to the debt is limited to the debtor and cannot be extended to the guarantor or consigners. Anyone other than the debtor, if is obligated for charges that the debtor has made, will still be liable after he/she files chapter 7, even if the case is in the debtor’s benefit. For finding the best attorney who could interpret and suggest solutions for your case, dial in 888-297-6203 now!