Credit card debt is part of my everyday life as a longtime debt consolidation lawyer and attorney for bankruptcy in Richmond, Indiana. The problem is, credit card debt is part of so many people’s everyday life. It’s a fact that credit cards are one of the biggest reasons why most people file bankruptcy Chapter 7 in Indiana and even small business bankruptcy in Indiana.
It may seem strange, but even though Indiana bankruptcy law is the focus of my professional life, one of the reasons I write these Bankruptcy in Indiana articles is to help people avoid bankruptcy. That’s why I was so glad when, exactly two years ago, the Credit Card Bill of Rights went into effect. That legislation helped consumers avoid some of the traps that had gotten them into trouble with their credit cards.
Some of the main rules in that Bill of Rights include:
A card company cannot issue a penalty interest rate increase only if you are more than 60 days late on a payment.
When you make a payment, any amount over the minimum payment must go towards the balance with the highest interest rate.
Interest rates can be charged only on balances held in the current billing period.
If your interest rate rises, you can request a reduction after six months of on-time payments.
One of the Columbus bankruptcy lawyers in the Zuckerberg bankruptcy office there found a very helpful article about credit cards in BusinessInsider.com. “Remember, credit card companies will fight to keep customers from going to the competition…Be proactive in what you want out of your plastic”. Some examples Business Insider gives of things you can ask for:
Remove annual fee
Lower interest rate
Remove a late fee
Change payment date
- Raise your credit limit
Now, to be realistic, I know you wouldn’t be reading this Bankruptcy in Indiana article in the first place if your credit rating was in tip-top shape. So, let’s talk about the role credit card companies are going to play if you file individual bankruptcy in Indiana.
Credit card debt is unsecured debt. Usually, unsecured debt is dischargeable in bankruptcy.
However, one or more credit card companies could decide to protest that discharge. There are only two ways they can win that argument: by showing you weren’t truthful on your credit card application, or by showing you ran up charges knowing you were going to file bankruptcy.
Now, I must tell you that our bankruptcy lawyers Indiana in Anderson, Richmond, Bloomington, Columbus, and Indianapolis we don't see many clients who set out to willingly commit fraud. Most of the time, clients just don't understand what information they need to include in their paperwork when they're filing personal bankruptcy in Indiana. A very large proportion of our efforts, in fact, whether it involves bankruptcy chapter 7 Indiana or Chapter 13 bankruptcy law in Indiana, involves helping our clients collect and then properly report, their financial information.
The bottom line is that almost always, filing bankruptcy in Indiana is a big, big help when it comes to credit card debt!
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg