Orlando Credit Card Debt Lawyer
The average Florida household has over $5,000 of credit card debt. The average credit card company charges 20 percent interest. A combination of a high principle and a high interest rate is never good news for consumers. Such a debt load quickly becomes unmanageable. At that point, the debtor must take action. Doing nothing while the situation gets worse simply isn’t an option for your family. Many people don’t see any way out. Fortunately, as outlined below, multiple options are available.
The thorough Orlando credit card debt lawyer at the Law Offices of Carol M. Galloway look for cost effective and long-term solutions that benefits your family, now and in the future. In many cases, we use the law to erase credit card debt. Think of what your family can do with the hundreds of dollars a month that currently go to credit card balances which, because of high interest rates, never seem to diminish.
Chapter 7 Credit Card Debt Discharge
In as little as six months, Chapter 7 eliminates most unsecured debts, such as credit cards, medical bills, and payday loans.
The benefits of Chapter 7 don’t stop there. As soon as debtors file their voluntary petitions, Chapter 7 stops creditor adverse actions like:
- Wage garnishment,
- Creditor lawsuits,
- Foreclosure, and
- Lien placement.
Usually, the Automatic Stay remains in effect until the judge officially closes the bankruptcy. At that point, since debtors aren’t legally required to repay most unsecured debts, it’s illegal for creditors to take any further action, such as selling such obligations to a debt collector.
If a debtor has an Orlando credit card debt lawyer, the process is reasonably straightforward. Lawyers help debtors strategically fill out paperwork, such as asset value declaration. Attorneys turn what can be a contentious meeting with a trustee (person who oversees the case for the judge) into a routine affair. Finally, if things go sideways, lawyers stand up for you in court.
Using Credit Responsibly After Bankruptcy
Some people are surprised that we often advise former debtors to borrow more money. However, responsibly using credit is the best way to quickly rebuild your credit score after bankruptcy. A credit score measures your ability to responsibly manage credit, not your ability to pay cash for everything.
Generally, debtors should acquire a credit card with a very low spending limit. Then, debtors should charge something every month and pay the bill in full every month.
Non-Bankruptcy Debt Negotiation
For various reasons, Chapter 7 bankruptcy isn’t an option for many families. That’s okay. Sometimes, the threat of filing bankruptcy is almost as good as a filing.
Pretty much all financial terms are negotiable, and attorneys are excellent negotiators. Therefore, attorneys interface with creditors and often convince them to lower the interest rate or even forgive some of the UPB (unpaid principal balance).
The lack of bankruptcy protections make these negotiations more difficult. The Automatic Stay doesn’t apply and creditors have no legal duty to negotiate in good faith. Therefore, even if it’s difficult, bankruptcy is usually the way to go. We’re here to help you get through this experience.
Connect With a Diligent Orlando Credit Card Debt Attorney
Bankruptcy offers distressed debtors a way out. For a free consultation with an experienced Orlando credit card debt lawyer, contact the Law Offices of Carol M. Galloway, P.A. Convenient payment plans are available.