Credit Card Bankruptcy
The final step to stop a creditor in its tracks is to file bankruptcy. Many times that step can be avoided by using techniques discussed above or because the creditor cannot collect any assets from the debtor.
If you cannot avoid filing and creditors have become extremely bothersome, then bankruptcy may be the only course of action.
The filing of a bankruptcy invokes the automatic stay of the Bankruptcy Code. What that means is that all lawsuits must stop and no additional suits can be filed. All other collection efforts are also stopped. This stay is a prime benefit of filing bankruptcy.
There are three kinds of bankruptcy that are available to individuals or corporations. All have a filing fee that must be paid to the U. S. Bankruptcy Court. Attorneys fees must either be paid before filing or are approved by the Court as part of the bankruptcy plan if a Chapter 13 or Chapter 11 filing.
Chapter 7 is a complete liquidation where there are no significant assets from which collection can be made. The debtor gets a complete discharge from the debts. Creditors share in any recovery from non-exempt assets but normally there are few assets as most Chapter 7 bankruptcies are "no asset" cases.
Chapter 13 is the "wage earner" bankruptcy. Secured creditors are paid 100% and unsecured creditors are paid through a three to five year payout. The debtor pays a fixed amount to the US Trustee for the time period and the unsecured creditors receive one to three percent of the value of their claims.
Chapter 11 is a business reorganization and is normally for corporations. A plan is confirmed by the Court which determines the level of the payout.
Most individuals will file either a Chapter 7 or a Chapter 13 bankruptcy. chapter 13 plan
San Antonio Bankruptcy Alternative to Pay Off Credit Card Debt
No San Antonio Bankruptcy Pay Off Credit Card Through Settlement Debt Negotiation
Bankruptcy Texas
If credit card debt is causing you pain, James (Jim) Montgomery recognized as a Texas Super Lawyer, explores the benefits of bankruptcy in "3 Ways To Stop Creditors In Their Tracks", a free report that you need to read.