Whenever someone’s financial situation has taken a turn for the worse and he or she is unable to manage things as they currently stand, that person may need to seek help. When that time comes and someone clearly needs assistance in dealing with credit card debt, there are options of which he or she should be made aware. However, if someone in Florida attempts to file for bankruptcy without the help of a professional, confusion over how credit card debt is handled may affect how that bankruptcy filing or process unfolds.
First, a consumer needs to know whether he or she qualifies for a Chapter 7 or a Chapter 13 bankruptcy. If the federal means test determines that an individual qualifies for a Chapter 7 bankruptcy, it is likely that his or her credit card debt will be discharged and that the individual will no longer be responsible for it. However, if he or she is required to file a Chapter 13 bankruptcy, he or she will likely have to repay at least a portion of the debt.
Second, any new charges put on a credit card will impact a bankruptcy filing. The old myth that a person can rack up debt freely then file for bankruptcy as a means of not paying for the charged items is simply untrue. No new charges can have been made in the 90 days prior to the bankruptcy filing. New credit card charges will result in a delay in the filing process.
Bankruptcy can be a difficult and confusing experience. A large part of a bankruptcy attorney’s job is to dispel any myths his or her clients may have heard and to provide a timeline for the bankruptcy process. Our firm has further information available on our website that may prove helpful. The information there may be able to help a Florida resident decide if bankruptcy is the right choice for dealing with his or her credit card debt.