Call Now
(916) 780-7005
Click Here
Free Case Analysis
MENU
  • Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

Credit Cards In Chapter 13 Bankruptcy

Credit Card debt is a major contributor to the overall U.S. household debt, and therefore is a common thing to deal with during a bankruptcy. We are often asked what happens to credit cards in a Chapter 13 bankruptcy, including: Can I keep using a credit card during bankruptcy? What happens to my credit card balance when I file bankruptcy? Can I keep a credit card during bankruptcy for emergencies?

During a Chapter 13 bankruptcy, you, your bankruptcy attorney in Sacramento, and the bankruptcy trustee will be taking a close look at your financial situation and finding a payment plan that will allow you to continue to earn an income while paying back your debt.

Credit Card debt in bankruptcy is typically designated as a general unsecured debt, which has the lowest repayment priority compared to secured debt such as your mortgage and auto payment or with priority unsecured debt such as alimony and income tax. The good news for debtors filing Chapter 13 bankruptcy with a large amount of credit card debt is that you may not have to pay back the total amount owed on your credit cards. That’s assuming that your credit card debt is not classified as secured.

The bad news is that once your credit card company(s) gets the news that you are filing bankruptcy in Sacramento they will most likely cancel your card, and therefore you will be unable to use it or tuck it away for a rainy day. This makes sense as credit card debt can be very burdensome, and so the Chapter 13 bankruptcy is design to keep you from assuming more debt. The good news is that once you file Chapter 13 bankruptcy, it will be approved if you can show that you can pay your secured and priority unsecured debts. As long as you complete your 3-5 year payment plan, then any general unsecured debt will be discharged at the end of the process, and offer you a fresh new start towards a positive financial future.

Categorized in: