Eliminating Credit Card Debt

Like the rest of Washington State, Snohomish County is getting hit hard by inflation. Our neighbors across Everett are struggling to cover their basic costs, with many bridging the gap with their credit cards. Credit cards are for secure purchasing and building your credit, and thus have high interest rates and fees. So, when you rely on them for regular costs, you easily end up with unmanageable credit card debt. Before you know it, you're ducking calls from credit card collection agents.

You don't have to hide from your credit card debt. With the help of our local Everett attorneys, you can face your debt head-on. We'll review your credit card debt and explore legal options for debt relief. Then, we'll make a plan to get you out of debt and back on track. Contact our Snohomish County law offices today to schedule your free consultation with our knowledgeable credit card debt relief lawyers.

The Washington State government knows that credit card debt can get out of hand, so they offer several avenues for legal debt relief:

• Chapter 7 Bankruptcy: If credit card debt has become overwhelming, you may qualify to have most of it eliminated with Chapter 7 bankruptcy.
• Chapter 13 Bankruptcy: Create a court-approved repayment plan, allowing you to catch up on credit card debt over three to five years under 11 U.S.C. § 1322.
• Debt Settlement: Negotiate with the credit card companies to reduce the total amount owed.
• Debt Management Plan (DMP): Work with a nonprofit credit counseling agency to lower interest rates and consolidate payments.
• Debt Consolidation Loan: Take out a loan with a lower interest rate to combine multiple debts into one lower payment.

Our local credit card debt relief attorneys in Everett will help you:

1. Assess Your Financial Situation: Our Everett attorneys start by reviewing your income, debts, and assets to determine the right debt relief option under Washington law RCW 19.16.250 and federal bankruptcy laws 11 U.S.C. §§ 707 and 11 U.S.C. §§ 1322. We'll also determine whether you qualify for Chapter 7 or Chapter 13 bankruptcy.
2. Stop Creditor Harassment: Your attorney will notify creditors of your legal representation, forcing them to comply with the FDCPA under 15 U.S.C. § 1692 and Washington State's Collection Agency Act RCW 19.16. Creditors will stop all unlawful collection calls, wage garnishments, and lawsuits.
3. Negotiate With Creditors: If bankruptcy isn't the best choice, your Everett attorney will negotiate lower settlements, reduced interest rates, or better repayment terms with your creditors. We ensure all agreements comply with Washington State's consumer protection laws RCW 19.86.
4. File For Bankruptcy If Necessary: If filing is the best option, your attorney will handle all paperwork and ensure compliance with the U.S. Bankruptcy Code and Washington's exemption laws RCW 6.15.010. Bankruptcy can protect your home, car, and wages while clearing unsecured debt.
5. Represent You In Court: If you file for bankruptcy, your attorney will represent you at the Western District of Washington bankruptcy court. They will also handle any disputes with creditors or trustees.
6. Develop Your Long-Term Financial Plan: After resolving your debt, your Everett attorney will help you rebuild your credit, define a new budget, and avoid future financial issues. They may also refer you to reputable credit counseling services in Snohomish County.

Because our debt relief attorneys live and work in Everett, they understand the local financial challenges unique to Snohomish County residents. Whether you're struggling due to job uncertainty in the Everett Mall Way business district, rising costs in the View Ridge-Madison neighborhood, or unexpected medical debt from Providence Regional Medical Center, we're here to help. Our experience with Snohomish County courts and local creditors gives you an advantage in finding the best solution for your debt problems.

As Everett attorneys, we know costs are going up across our state. Credit cards can provide some necessary help to get us through these tough financial times. However, that does mean that credit card companies get to exploit you with their high fees and interest rates. You have rights when you are facing credit card debt. We'll help you protect them. Contact our Everett law offices now to schedule your free consultation. We'll review your case and find you a path out of credit card debt for good.

Credit card debt can be totally eliminated, or discharged, in bankruptcy. It does not matter if you are current on your payments, if you are a month or many months behind or if you have been sued and are being garnished for an old credit card debt – at any stage you can stop the collections as soon as you file bankruptcy and eventually discharge the debt all together.

Of course, once you file bankruptcy you can not use the credit cards any more. You will have to live without a credit card but a bank debit card can be used in almost any situation a credit card can be used. Eventually after filing bankruptcy you will be able to rebuild your credit to the point where you will have access to credit cards again.

If credit cards receive any money in a bankruptcy, they are among the lowest priority of debt to get paid known as “general unsecured debt”. This class of debt may be paid a pennies on the dollar in a Chapter 7 liquidation or a Chapter 13 repayment plan. In most Chapter 7 cases, credit card debt is not paid at all. In Chapter 13, credit cards get anywhere from 0% to 100%, depending on the ability of the debtor to pay.

In some cases, a bank asks a borrower to put up collateral for a credit card. Some of these agreements are “cross collateralization” agreements and often involve a car loan with the same bank. If you took out a credit card with a bank you have a car loan with, make sure it was not cross collateralized if you are considering bankruptcy.

Another major way credit card debt is excluded from the discharge in bankruptcy is when a credit card company wins an “adversarial proceeding” in bankruptcy court based on fraud. A credit card company must prove that the charges were made on the card when the debtor had no intention of paying them back. These are hard cases to win, though if more than $500 was charged for luxury goods or cash advances within 90 days, the case is a bit easier because the there is a presumption that the debtor committed fraud. Otherwise, the credit card company has to show the debtor committed fraud based on all the circumstances of the case – how much debt the debtor already had, whether any payments were made after the charges, how long the occurred before filing and whether the debtor had contacted a bankruptcy attorney before making the charges, among other common sense considerations. It is hard to prove a fraud case because creditor has to convince a bankruptcy judge what the debtor’s state of mind was through circumstantial evidence and bankruptcy judges are supposed to favor giving the debtor a fresh start. However, it is not impossible for them to win a fraud case. If you have made substantial charges on a credit card, it may be a good idea to wait to file even if you never thought you would file bankruptcy when you made the charges.