iFocus.Life News News - Breaking News & Top Stories - Latest World, US & Local News,Get the latest news, exclusives, sport, celebrities, showbiz, politics, business and lifestyle from The iFocus.Life,

How to Discharge a Credit Card

104 34
    • 1). Call a lawyer. If you cannot afford to hire one yourself, search for consumer advocacy lawyers in your area who will help for a minimal fee.

    • 2). Speak with your lawyer about the different forms of bankruptcy, and decide whether Chapter 7 or Chapter 13 bankruptcy is best for you. Chapter 7 will allow those with no or limited income to discharge almost all debts immediately. Chapter 13 will help those with higher incomes discharge debts over time.

    • 3). Begin the bankruptcy process with the help of your lawyer. This varies from state to state, but in most places you will have to go through credit counseling after filing. You will then attend a short 341 meeting (a meeting of your creditors named after a section of the bankruptcy code), where you will answer questions relating to the debt and where the debt will be discharged in legitimate cases.

    • 4). Ask the judge what obligations, if any, remain if you filed for Chapter 7. Most, but not all, debts are immediately discharged, but some, including child support and student loan payments, are not.

    • 5). Propose a repayment plan if filing for Chapter 13. Your lawyer and the court will assist you in this process. The plan will explain how you will repay creditors and will require all disposable income to go toward this goal.

    • 6). Make required payments on your Chapter 13 repayment plan. You debt will be discharged in three to five years, depending on the time frame provided in the plan.

Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time
You might also like on "Business & Finance"

Leave A Reply

Your email address will not be published.