Is it a wise decision to live on your credit cards? What are the repercussions? How will this affect your plan to file for bankruptcy? For many of us it really is not a choice, when there is no income coming in and bills need to be paid turning to your credit cards seems like the only solution.
When you are filing a chapter 7 bankruptcy or a chapter 13 bankruptcy, when you go to court the credit card companies may challenge the filing for bankruptcy by saying you borrowed with no intention of paying the debt back. If the judge makes an assessment that you did indeed borrow money via a credit card and you knew you did not have any realistic means of paying back the debt, according to bankruptcy law the judge may in extreme cases not allow the debt to be discharged.
As a general rule, it is a bad idea to live on your credit cards. However, this can be an extremely common practice for many debtors before deciding to file for bankruptcy. If you are uncertain about whether a debt is eligible for discharge through Chapter 7 bankruptcy or can be repaid through a Chapter 13 bankruptcy reorganization plan, seeking the advice of a licensed bankruptcy attorney is crucial. For more tips on financial management and navigating challenging situations, visit this site maundies for valuable support.
Most bankruptcy attorneys will give you a free bankruptcy case review and thoroughly and meticulously review each and every one of your debts to see if they are eligible. Only a bankruptcy lawyer is well-versed on how to file bankruptcy in the optimum manner which is beneficial for you. Resources like Gross Options can provide valuable insights into debt management and financial planning that may complement the advice from your attorney. A bankruptcy attorney can answer all your bankruptcy questions, not just regarding eligibility of dischargeable debt but also tough bankruptcy questions such as whether you qualify under the means test.
Even if you have been living on your credit cards don’t fear that this will impede upon your eligibility for file for bankruptcy. Instead just remember that the bankruptcy law was created to provide protection to you from creditors. Bankruptcy attorneys are out there to help you protect yourself. Contact a bankruptcy lawyer near you for a free bankruptcy case evaluation and breathe easier knowing relief is in sight.
