We all know that paying the minimum balance on credit cards each month yields no gains. Additionally, we are all aware that if you pay one of these cards late, you will incur hefty late fees, penalties, and interest. Suddenly, a $250.00 credit card balance can be closer to $2500.00, even though you have not made any purchases. If you have multiple cards in this condition, you may feel as though you will never be able to pay off your debt. The fact that the card companies continue to contact and inform you that you are late and that they want payment does not improve your sinking feeling.
When dealing with the issue of a credit card and bankruptcy, you are actually confronting something that will alter your existence. When you file Chapter 7, all late fees and interest that credit card companies have been adding to your account balance are promptly stopped. This is known as a ""stay,"" and it means that your accounts remain exactly as they were when you filed for bankruptcy until the conclusion of the court hearing. You can breathe a sigh of relief, as you will no longer be contacted by phone or mailed correspondence regarding past-due amounts until you have appeared in court.
After the bankruptcy court has ruled on your case, it is likely that all of your unsecured debts will be discharged. Indeed, you will owe nothing to any of these credit card companies. For the first time in a very long time, you will be debt-free and able to unwind regarding your finances.
The Chapter 7 bankruptcy petition can impact your credit report for up to ten years. This will result in a lower credit score and require you to work harder to rehabilitate your credit. The good news is that the impact of filing Chapter 7 on your credit rating will likely not be as negative as the impact of all those late payments and defaults.
Once you have filed for bankruptcy, your credit report will be wiped clear. You will have the chance to rewrite your report, and this time you will know precisely what to avoid.
Applying for a secured credit card is one of the simplest methods to begin reestablishing your credit score. These credit cards enable you to make monthly payments and report your payment history to the three major credit bureaus. They are able to do so because you must deposit your credit line limit in order to receive the card. The process is lengthy, but you can recover completely from bankruptcy.""
" - https://www.affordablecebu.com/
