Four Things Everyone Who’s Drowning Under Credit Card Debt Should Be Aware Of

You could feel hopeless about ever being able to pay off your credit card debt if you’ve accumulated a significant balance. Even if you could afford to pay the minimum amount due each month, it would still take years to pay off the sum. In the meantime, if you fall behind on your payments enough, your debt will probably be sold to a collection agency, which will start ruthlessly pressuring you for repayment at a high interest rate.

Fortunately, you don’t have to act like a helpless victim during this. To get out of debt and regain control of your finances, the law does provide you with important protections and solutions. These are 4 things you should be aware of regarding these legal options and protections. Contact Law Offices of Terrence Fantauzzi at (909) 552-1238 now for a free bankruptcy consultation.

Many Debt Collectors Employ Unethical Methods

Debt collectors are motivated to persuade you to pay by any means necessary because they are paid on commission. The Fair Debt Collection Practices Act, which outlines what constitutes unethical and unlawful conduct by debt collectors, however, restricts the strategies they may employ.

If your debt collectors are phoning you at odd hours, pretending to be someone else, threatening to put you in jail if you don’t pay, or calling you so frequently that it amounts to harassment, they are breaking the law and you may have a case against them.

In Chapter 7 Bankruptcy, All Your Debts Are Discharged Completely

For people who fulfill specific income requirements, Chapter 7 bankruptcy offers a way to entirely wipe off all unsecured debts, including credit card debts. You can often keep your house, car, and other exempt property if you meet the requirements for Chapter 7. Contact a bankruptcy lawyer to assist you in determining your eligibility.

In Chapter 13 Bankruptcy, You May Restructure Your Debts

Chapter 13 bankruptcy provides an excellent alternative for people who might not meet the requirements for Chapter 7 bankruptcy due to their high income or assets. With this kind of bankruptcy, a judge can combine all your debts into one interest- and penalty-free repayment schedule. Your unsecured obligations, including credit card debt, will normally be erased once you have made payments for three to five years. In Chapter 13, you will be allowed to keep every item you own.

If You Retain Legal Counsel, Debt Collectors Cannot Contact You

Another crucial thing to understand is that any communication with debt collectors will stop as soon as you retain legal counsel and let them know. They won’t be able to get in touch with you directly; instead, they’ll have to go through your lawyer, allowing you to relax while you file for bankruptcy to get rid of your colossal credit card debt.

Contact Law Offices of Terrence Fantauzzi at (909) 552-1238 now to request a free bankruptcy consultation.

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