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Credit Card Debt
Did you know the average person in Washington State carries $5,238 in credit card debt? Further, most residents struggle to pay it off. Unmanageable credit card debt is prevalent across Spokane County because credit cards have high interest rates and fees, which add up over time.
Fortunately, people in Washington State also have access to legal relief for their credit card debts. Our Spokane attorneys can help you access that relief. Contact our Spokane County legal office and schedule a free one-on-one consultation with our attorneys.
What Are My Legal Options To Get Rid Of Credit Card Debt In Spokane County?Washington State understands that credit card debt can get needlessly unmanageable, so there are many programs to help. Our attorneys will explore these legal options for your case, including:
- Chapter 7 Bankruptcy: If you're overwhelmed by credit card bills, Chapter 7 might be an option. It can wipe out most of that debt by liquidating your non-exempt assets. Basically, the Spokane bankruptcy courts may sell off some of your property to pay creditors, but the rest of your qualifying debt gets discharged under 11 U.S. Code § 727.
- Chapter 13 Bankruptcy: With Chapter 13, you have the opportunity to catch up without losing everything. You can keep your property and set up a repayment plan based on what you can realistically afford. The Spokane court approves this plan under 11 U.S. Code § 1325. You usually have three to five years to pay it off.
- Debt Settlement: If bankruptcy doesn't feel right, you might consider debt settlement, where you work with an attorney to negotiate with your credit card companies to reduce the total amount you owe. Settlement doesn't eliminate your credit card debt, but it can significantly lower your balances.
- Debt Management Plan (DMP): A DMP is a structured plan you set up with a credit counseling agency. They'll work with your creditors to create a realistic monthly payment, often with lower interest rates. It's not a loan; It's a plan to help you pay off your debt over time without going to court.
- Debt Consolidation Loan: Tired of juggling multiple credit card payments? A consolidation loan could roll everything into one monthly payment with a lower interest rate. While it won't erase your debt, it can make managing it less stressful and more predictable.
Each of these options can be effective depending on your circumstances.
Does Filing For Bankruptcy Get Rid Of Credit Card Debt In Spokane?Yes. Under federal law (11 U.S. Code § 727), filing for bankruptcy can allow you to erase credit card debt and regain financial stability if you meet the eligibility criteria.
How Can A Spokane Attorney Help Me With Credit Card Debt?A qualified bankruptcy attorney understands the legal ways to address credit card debt. Here's how we will assist you:
- Review your financial situation.
- Determine if bankruptcy or another solution is right for you.
- Explain the different bankruptcy chapters (Chapter 7 and Chapter 13) and how they can help with credit card debt.
- Assist with filing for bankruptcy or negotiating with creditors on your behalf.
- Help you avoid common pitfalls and protect your debtor’s rights.
- Offer guidance on life after debt so you can rebuild your financial future.
Get started by calling our Spokane law offices now to schedule your free consultation.
Your FAQs About Legal Credit Card Debt Relief In Spokane AnsweredQ: Am I allowed to keep using my credit cards?
A: It's best to stop using your credit cards as soon as you're considering bankruptcy. Under 11 U.S. Code § 523(a)(2)(C), using your cards when you know you can't repay them may be considered fraud, especially if you make large purchases or cash advances. Purchases over $800 made within 90 days of filing may trigger objections from creditors, particularly if they were for luxury items.
Q: Can a Spokane creditor garnish my wages for unpaid credit card bills?
A: Yes, creditors in Spokane can garnish your wages, but only after they sue you and obtain a court judgment. Under RCW 6.27.150, creditors can garnish up to 25% of your net wages. However, if you file for bankruptcy in Washington State, the automatic stay under 11 U.S. Code § 362 stops garnishments immediately. If you're facing wage garnishment, we can file an emergency petition to protect your paycheck while we work on your case.
Q: Can I file for bankruptcy on credit card debt if I'm unemployed?
A: Yes, bankruptcy is available for people with no income. In fact, unemployment is often one of the reasons people qualify for Chapter 7 bankruptcy under 11 U.S. Code § 707(b). You do, however, have to pass the Means Test, which evaluates your household income. If you're currently not working, you may qualify for a complete discharge of your credit card debt.
Q: Can I choose which credit cards to include in my bankruptcy?
A: No. Under 11 U.S. Code § 521(a)(1)(B), bankruptcy law requires you to list every debt, including credit cards you may want to keep. It's an all-or-nothing process. While some clients worry about losing cards they use for emergencies, we can help you rebuild your credit quickly after filing.
Q: What happens if I already paid off one card but can't handle the others?
A: That's a common situation, and you're not penalized for paying off some cards while others remain unpaid. However, if you made large payments to certain creditors or family members within 90 days of filing, 11 U.S. Code § 547 might flag those as preferential transfers. We'll review your recent payments to prevent any compliance issues when we file your bankruptcy.
Q: How are store credit cards treated in bankruptcy?
A: Spokane courts treat store credit cards the same as other unsecured debt in bankruptcy. However, store cards can sometimes face stricter scrutiny, especially if you made purchases shortly before filing. Under 11 U.S. Code § 523(a)(2)(C), we'll make sure that your purchases and timing don't raise any red flags with the Spokane bankruptcy judge.
Our Spokane Credit Card Debt Relief Team Can Help
If you live in Spokane County, credit card debt relief is available to you. Contact our Spokane debt relief attorneys who specialize in this practice area now. We'll help you find a way out.
