Rebecca K. McDowell practiced consumer bankruptcy law for several years in the Eastern District of Michigan, representing Chapter 7 trustees as well as consumer debtors, before focusing her career on writing about the law and editing legal content. She has authored bankruptcy articles on Nolo.com and other bankruptcy sites in the Nolo Network. She holds a B.A. in English from Albion College and obtained her J.D. from Wayne State University Law School in Detroit.
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Nolo's Bankruptcy Site
Articles By Rebecca McDowell
Get state-specific information on filing for bankruptcy in Louisiana.
Most credit card companies are unlikely to forgive all your credit card debt, but they do occasionally accept a smaller amount in settlement of the balance due and forgive the rest.
Often people think bankruptcy will hurt their credit so much that they will never again be able to get a car loan or other credit. Fortunately, that's not the case. Many people emerge from bankruptcy and are able to finance a car. Be aware, however, that you'll likely pay high interest and fees. Read
If you're trying to free yourself from the burden of credit card debt, you have a number of options available. If you lack the means to pay the debt in full over a reasonable period of time but are unable or unwilling to file bankruptcy, debt settlement may be an option.
If you have a credit union account and you file for bankruptcy you could lose your membership, the credit union can freeze your accounts, and more.
Chapter 7 and Chapter 13 bankruptcy will stay on your credit report for the same amount of time; about ten years. Although they both have the same effect on your credit score, a particular creditor reviewing your report to decide whether to lend you money might view one chapter more favorably than the other.
Watch out for cross-collateralization with credit union accounts in bankruptcy -- debts you think are unsecured might be secured.
How much of your credit card debt you must pay through your Chapter 13 bankruptcy plan depends on a number of factors. Whatever amount is left at the end of your repayment period will be discharged (wiped out).
Learn when you might need to reopen a bankruptcy case, and how to do it.