Circumstances can happen that are beyond an individual's control. This could include a job layoff, an accident or a divorce. While we cannot control certain events, we can take action to seek relief from the stresses that financial troubles can bring.
With the guidance of a lawyer from our firm, you can find the relief you need through bankruptcy. We are the legal team at The Pearman Law Firm, and we represent clients throughout Colorado in bankruptcy law matters. We will thoroughly explain the legal process involved in filing for bankruptcy and make certain that your questions are answered by an experienced lawyer. You will find our personalized approach to bankruptcy one that you can truly benefit from.
What Happens to Credit Card and Medical Debt in a Bankruptcy?
In a Chapter 7 bankruptcy, unsecured credit card debt and medical debt are completely wiped off your record. In a Chapter 13, you pay a portion of your debts back over a three- to five-year period. Most plans require the individual to pay much less than the amount that is actually owed, typically pennies on the dollar. At the end of the plan, the remainder of the debt is discharged.
The only credit card debts that creditors may object to are charges made within 90 days of the discharge. We advise our clients to keep this in mind as they are preparing to file for bankruptcy.
Raising Your Credit
Many people wait too long to file bankruptcy because they are concerned about the effect it may have on their credit. If you are facing significant debt problems and continuously receive calls from creditors, your credit score is probably already low. If that is the case, your credit will likely improve with bankruptcy. Bankruptcy wipes out your unsecured debts, allowing you to get a fresh start.
Contact a Denver Medical Debt Relief Attorney
To schedule a free initial phone consultation with our Wheat Ridge credit card debt relief attorney, we invite you to contact our firm online or by phone at 720-259-9528 or 888-835-6339. We can help you get a fresh start through bankruptcy.