If you have out-of-control credit card debt, 2021 is your year to get it under control. However, if you don’t think you can, we’re sharing what you need to know.
For many people, out-of-control credit card debt can result in bankruptcy; in fact, it is one of the reasons people file.
As we’ve said before, the best way to use credit cards is to pay them off in full each month – don’t ever carry a balance. The interest rates are typically very high and it’s quite easy to get out-of-control credit card debt quickly – and it’s very challenging for many folks to make a dent in that debt because of compounding monthly interest.
So, what do you need to know, if you have out-of-control credit card debt and are considering bankruptcy?
Know that your debt can be discharged if you file for bankruptcy in many cases. However, if you buy luxury items – or if you use the card fraudulently or to pay non-dischargeable debt – in the 90 days before you file bankruptcy, you may have to pay that debt back.
If you are wondering whether you can keep a credit card through the bankruptcy process, the answer is generally no. Usually, a credit card company will be notified of your filing and cancel your card.
After your bankruptcy is completed, you can try to reestablish credit in various ways.
So, if you see your debt starting to spiral out of control, get it back IN control, otherwise you could receive calls at home, or at work, from a debt collector who could also take you to court to get the money.
If you have questions or concerns about credit card debt in Ohio, the lawyers at Mina Nami Khorrami LLC can help. Contact us today at 614-857-9590.