Credit Card Debts in Chapter 13 Bankruptcy

Anyone who owns a credit card in Oklahoma City tends to pay mainly using that, whether small or big. You might feel like it is nothing at that time, but over time the amount is only going to add up to a considerable extent. Most people don’t realize how much they have spent till they get the bill in their hands.

At this time, the Chapter 13 Bankruptcy can help you get some relief from such stress. This is only when you cannot afford to pay off the debt, and your minimum monthly payments are higher than your income. But to get it done right, you have to consider hiring a bankruptcy attorney who can guide you through the whole process.

What Is Secured and Unsecured Debt?

When opting for Chapter 13 bankruptcy, you must first understand if your debts fall under the secured or unsecured category. According to the general rule, if your debt is under a secured creditor, then they can take away the property you brought, but if your debt is under an unsecured creditor, they might not be able to take it away from you.

The best example of secured debt is your home mortgage lender, who can take away your home and resell it if you cannot pay your loan. In this case, your credit card charges are unsecured debt as the lender cannot come and take back the things you have bought with your card. For example, if you have booked a vacation with your credit card and at the end can’t give the loan, they cannot press rewind and take the vacation away. Your bankruptcy attorney can tell you all about this.

Which Debts Should Be Prioritized?

After you have discussed unsecured debts with your bankruptcy attorney, you need to figure out which one should be prioritized under the Chapter 13 bankruptcy rule. This will help you to understand which debts need to be paid first. The first priority is the child and spousal support because your whole family might rely on that fund.

Next, you need to give the money you owe to your bankruptcy attorney and the appointed trustee of Chapter 13. Last you need to give back any federal and state tax that you owe to them. After you have paid all these necessary debts, you might have to pay miscellaneous unsecured debts, including your medical bill, sports bill, or membership dues.

Why Do You Need an Attorney?

Several things can go wrong while going through the whole process, so it is essential to hire an attorney to get their expert judgment. Reneau Law Group helps you get hold of the best attorneys in Oklahoma City. Call then today to schedule your consultation.

**Disclaimer: The above article does not imply a relationship between attorney and client, nor does it aim to provide any legal advice.