Ellicott City, MD Credit Card Debt Attorneys

Hands-On Bankruptcy Lawyer Helping to Discharge Credit Card Debt in Ellicott City, Maryland

Anyone can get caught in the credit card debt cycle. Even someone who is generally very responsible with their spending can have a financial emergency and miss a monthly payment. It only takes one missed payment to trigger extra interest and prolong the repayment term. If you miss several payments during a crisis or have to use your credit card to handle emergency spending, you can quickly find yourself in a cycle of debt that you cannot break out of alone.

The monthly payment your credit card company expects you to make might have become more than what you can realistically spend on debt repayment. If you also have other types of debt, such as medical debt or personal loan debt, you may feel as though you are drowning. Even someone with a relatively good income can reach a point where keeping up with debt repayments becomes unmanageable. If this is the situation you are in, it may be time to consider filing for bankruptcy.

Law Offices of Marc A. Ominsky, LLC has helped numerous people who are struggling against insurmountable credit card debt in our more than 50 years of combined legal experience. We understand how credit card debt can spiral out of control rapidly. Our attorneys will do all we can to help get you the relief you need. Our hands-on bankruptcy attorneys can help you in real time when you reach out to us. We will guide you through the process, from choosing the right type of bankruptcy to protecting your assets from liquidation or establishing a repayment plan.

Understanding the Credit Card Debt Cycle

You may have started using a credit card fully intending to pay it off completely each month. However, that is not always possible. The debt cycle often begins when someone has to use a credit card for emergency expenses, like an unexpected auto repair or a trip to the after-hours veterinarian's office. When you cannot pay your balance off completely, you will be charged interest. The higher your interest rate, the more of a problem this could be. The interest may be as much as a monthly payment or more, adding time to your repayment term. If you are forced to use your credit card for another emergency before you get caught up, or if you must skip another monthly payment, the cycle becomes even harder to escape.

The problem can be compounded if you are facing challenges like the loss of a job or a long-term illness that prevents you from working. Credit cards can provide a needed lifeline when dealing with a financial emergency, but they can also leave you trapped for far longer than you ever expected.

Discharging Credit Card Debt Through Bankruptcy

Chapter 7 and Chapter 13 bankruptcy can both be used to discharge credit card debt. In Chapter 13 bankruptcy, your credit card payments and other debts you owe would be consolidated so that you would only make one manageable monthly payment. You would keep making these payments for three to five years, and once your repayment plan is complete, your remaining debts will be erased. If you choose Chapter 7, you would not need to keep making payments, but your non-exempt assets may be liquidated.

Which type of bankruptcy you choose will depend on your priorities and how you may be affected. If most or all of your assets would be exempt, Chapter 7 may be the easiest solution. If you are confident that you can keep making a monthly payment and want to avoid the loss of your assets, Chapter 13 may be a better choice. This is an important decision you should discuss with a qualified attorney.

Luxury Credit Card Purchases and Bankruptcy

It is best to avoid making purchases using your credit card in the months before filing for bankruptcy, especially if you are considering Chapter 7 bankruptcy. Almost any purchase that is not reasonably necessary can be deemed a luxury purchase. Purchasing unnecessary goods or services using a credit card just before filing for bankruptcy can make the court think that you made these purchases in bad faith, knowing you would not pay back your credit card debt in full. Your attorney can review your spending to determine whether this issue could affect your case.

Contact Our Ellicott City, Maryland Credit Card Debt Lawyers

Law Offices of Marc A. Ominsky, LLC is experienced in helping people get relief from credit card debt through bankruptcy. Our reliable Ellicott City, MD credit card debt attorneys will be there to help you through every step in the bankruptcy process. Contact us at 443-539-8712 for a complimentary consultation.