Don’t Believe Your Creditors - You Can Still File For Bankruptcy!
By Richard K Gustafson
I’ve heard reports that some credit card company collectors are telling people that they can’t file for bankruptcy on their credit cards anymore. That statement is a lie!
Bankruptcy is alive and well! Most studies have shown that 80-90% of people who look into bankruptcy could still qualify for chapter 7 bankruptcy relief without having to worry about their income level. Of the 10-20% of people who may earn more than the state’s median, my personal experience shows that the majority of them will also qualify for chapter 7 relief. Even for those who are “forced” into chapter 13 bankruptcy, bankruptcy still provides powerful and significant relief from creditors! In some cases, it provides even more relief than chapter 7.
It is true that credit cards debt incurred through fraud or used fraudulently may be protected from the bankruptcy discharge, but the burden of proving fraud is the creditor’s. Fraud was an argument that could have prevented discharge in chapter 7 even under the old law. It is true that fraud, under the new law, could also prevent the discharge of credit card debt under chapter 13, but this is not the same thing as the blanket statement that bankruptcy can’t discharge credit card debt anymore. That general statement is untrue. This is just another example of credit card companies attempting to prey on consumers. Don’t let them succeed! If you are having financial difficulties, don’t give up! Seek knowledgeable legal counsel for advice about your situation. Bankruptcy could still provide you significant relief and be the best choice you have ever made in your life.
