Do I have to keep paying my credit cards if I file for bankruptcy?
The process of filing for bankruptcy allows Americans to wipe away (or “discharge”) most if not all of their debts. For many reasons, filing for bankruptcy can have a stigma attached to it even though it may be the right move – financially and legally – for many people to make. Therefore, Georgians who are considering filing for bankruptcy should consult a knowledgeable attorney to learn the facts, benefits, disadvantages, and consequences of this process.
The great advantage to filing for bankruptcy is that, if your bankruptcy application is approved, you are given a clean financial slate and many (and in some cases all!) of your previous debts and bills are discharged or reduced. (It should be mentioned that there are certain preexisting debts – such as taxes owed to the federal government or child support and alimony payments – that will not be discharged after bankruptcy.)
However, one kind of debt that is almost always discharged after bankruptcy is credit card debt. Many Georgians have found that during the 2008 economic collapse and the tough times that followed, they were forced to pay for household necessities such as food, clothes, and other bills with credit cards. Now, those credit card balances have gotten bigger and harder to manage.
By filing for bankruptcy, you are able to stop paying the balances on your credit cards. Since credit card debt may be forgiven in this process, after your bankruptcy applications is approved you will no longer be required to pay off your cards – even if you hundreds or even thousands of dollars in remaining balances.
Now, the thought of not having to pay off your credit cards may seem very attractive to many people. But it should be emphasized that filing for bankruptcy does have lasting financial implications and consequences. Your credit may be affected after you file for bankruptcy, which may make it more difficult to open new credit cards, take out loans for a big purchase such as a new car, or negotiate a mortgage.
As you can see, even with the obvious benefits that getting your credit card debt discharged offers, filing for bankruptcy is a very big decision and one that can affect your and your family’s lives for many years. Contact our office today to speak to a skilled Georgia bankruptcy attorney about your case. We are happy to answer all of the questions you may have and advice you on the best legal strategy that fits your household needs and financial goals.