Credit Card Debt Relief In Nevada

The average American household has a $15,310 in credit card debt, on top of student loans, car loans, and mortgages. If you are struggling with a substantial amount of credit card debt, you are certainly not alone. When you are facing multiple minimum payments each month and no end in sight with high-interest rates, it’s important to remember that you do have options. An experienced bankruptcy attorney can help you consider your options to consolidate the debt and get relief from your debt or file for bankruptcy to discharge the debt.

What Happens to Credit Card Debt in Chapter 7 Bankruptcy In Nevada?

Chapter 7 bankruptcy is the most common form of bankruptcy for consumers and it wipes out most types of debts. Credit card debt is generally treated like all other unsecured claims in a Chapter 7 bankruptcy case. If your estate has enough non-exempt property, the trustee may use them to pay some of the credit card debt. Most bankruptcy cases, however, are no-asset cases which means, there is no property to liquidate to pay off debts. Because credit card debt is unsecured, it is very rare for a credit card company to receive any payment in a Chapter 7 bankruptcy.

In the vast majority of cases, your entire credit card balance is discharged once your bankruptcy is complete. There are a few exceptions to this rule and you may be liable for credit card debt in the case of fraud.

There are two cases in which credit card purchases are presumed to be made through fraud in a bankruptcy case:

• Luxury goods. Using a credit card to buy over $650 in luxury services or goods within 90 days of filing bankruptcy means the debt will be presumed to be non-dischargeable. You will be responsible for these purchases.
• Cash advances. If you use a credit card to take more than $925 in cash advances within 70 days of filing, the debt will be non-dischargeable.

Contact a Las Vegas Bankruptcy Lawyer

Bankruptcy may be the solution you are looking for to get out from under the mountain of credit card debt that never seems to get smaller. There are two options for eliminating credit card debt through bankruptcy:

• Chapter 7 bankruptcy. If you qualify for Chapter 7, it can eliminate all dischargeable debt, which includes all unsecured credit card debt.
• Chapter 13 bankruptcy. This option sets up a payment plan for 3-5 years. After making your scheduled payments toward your debts, remaining debt and credit card debt is discharged.

A Las Vegas bankruptcy attorney at Vegas BK can also help you explore other options that may be available to pay off the credit card debt, such as a loan modification or consolidation. Contact Vegas BK today for a free consultation with a bankruptcy lawyer who will help you understand your options.