Monday, November 14, 2011

What do Credit Card Companies Demand for Non-Bankruptcy Settlements?

by Jonathan Ginsberg, 

Credit card debt remains a primary reason that folks call me to ask for a financial problem evaluation issues.   Generally bankruptcy constitutes one option but by no means is Chapter 7 or Chapter 13 the only option.

Recently I met with a very nice woman who owes around $6,000 in credit card debt, but not much else.  After talking to her, we both agreed that bankruptcy did not make sense for this small amount of debt.   There is, by the way, no "minimum" amount of debt that would disqualify you from filing bankruptcy but given that the attorney's fee cost of Chapter 7 usually exceeds $1,000 and the attorney's fee cost ofChapter 13 can exceed $3,000, it hardly makes sense to file a bankruptcy if you debt is not significant.

For more information on these matters, please call our office at 305 548 5020.


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