Credit Card Debt Forgiveness
Credit card debt forgiveness is possible, but only in a few circumstances.
Use Bankruptcy for Credit Card Debt Forgiveness
Credit card debt is what is called “unsecured” debt. That means there is no asset that can be taken if the debt is not paid. In bankruptcy, unsecured debt can be completely eliminated by the bankruptcy judge. This has to do with the nature of bankruptcy.
When you file for bankruptcy, the people you owe money to need to get in line to get paid. The ones at the front of the line are the ones that have the debt “secured” with an asset, like a car or a house. The credit card companies are put near the end of the line of people to be paid, and often they get no money at all.
Debt Settlement to Resolve Credit Card Debt
A debt settlement is where a debt is paid off for a portion of what it owed.
This approach is possible because people can use savings to pay the credit card debt, rather than relying on their paycheck. Or, if someone is expecting some money to come in, they can get debt relief by making the credit card company a debt settlement offer.
If you need debt relief help, phone Axsmith Law LLC at (202) 285-5415.