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Michigan Credit Card Debt Relief Attorney

Explore Your Options for Credit Card Debt Elimination in Michigan

For millions of Americans, repaying credit card debt is an endless battle. If you too are struggling to keep your head above water, it is important to understand that you have options.

While filing for bankruptcy is an effective way to wipe out unmanageable debt, there are numerous other ways that you can regain control of your finances. For example, strict budgeting and strategic planning is a good way for you to start chipping away at your credit card debt.

If that is not enough, our lawyer may be able to assist you in negotiating a settlement with the bank or the issuer of your credit card. If you are really in over your head, however, you may want to consider filing for bankruptcy.

Discover Debt Resolution Strategies: Contact Hensel Law Office in Sterling, MI at (888) 258-0651 for a No-Cost Consultation.

Understanding Chapter 7 Bankruptcy and Credit Card Debt

If you are unable to get a handle on your credit card debt, filing for Chapter 7 may be your financial solution. Through this debt relief process, you would be able to discharge most, if not all, of your unsecured debt. This means you would be absolved of the responsibility to repay your overdue credit card bills once the process is over.

During Chapter 7 bankruptcy, your non-exempt assets would be liquidated and the proceeds would be used to repay your creditors in order of priority. Since credit card debt is low on the scale, it is unlikely the credit card company will be repaid at all.

Non-Dischargeable Credit Card Debts: Know the Exceptions

  • Luxury Purchases and Bankruptcy - If you use a credit card to purchase "luxury goods" or services within 90 days of filing for bankruptcy ($650 or more), a judge can choose not to discharge the debt, as this could be seen as an attempt to defraud the court. However, this excludes any goods or services deemed necessary for the support of you and your dependents (i.e. food, gas, and clothing).
  • Cash Advances Prior to Bankruptcy - If you use a credit card to take out a large cash advance within 70 days of filing for bankruptcy ($925 or more), the debt will be considered nondischargeable. It will not matter whether or not you used the money to purchase luxury items, as you will still need to show the court you intended to repay the debt when you incurred it.

Chapter 13 Bankruptcy: Repayment Plans and Credit Card Debt

Unlike Chapter 7 bankruptcy, Chapter 13 requires you to reorganize your debt and develop a suitable repayment plan to be executed over three to five years. You will be asked to repay creditors in order of priority. Therefore, whether or not you repay your credit card debt will depend on the type and amount of all other debts that you have incurred.

For example, you would first be required to repay all secured loans and priority unsecured debts before touching your credit card debt. If at this point you can afford to repay more of your debt, you will be required to do so.

Any unsecured debts not been repaid at the end of your bankruptcy will be discharged by the court.

Struggling with Credit Card Debt in Michigan? Call (888) 258-0651 for a Personalized Consultation. Evening and Weekend Appointments Available.

Client Testimonials

  • Tom Hensel is definitely the right attorney to call!

    “I was referred to Tom Hensel by a friend. My first impression was not only was Tom professional but he's so kind and caring too. He helped my husband and I through an embarrassing, scary situation and definitely made it more positive one. He guided us through our options and helped us make the right decision for us which ended up being a chapter 7 bankruptcy. Tom was so knowledgeable and helped us throughout the whole process. He never once made us feel uncomfortable or dumb when we had questions. He was also very easy to get a hold of when questions would come up and would always return our calls and emails promptly. I strongly recommend Tom to anyone going through this kind of financial nightmare. Do yourselves a favor and call him right away. He will help you get on the right path again. Our only mistake was waiting so long to call him!! When we in court waiting our turn all the other attorneys referred to their clients as "The debtors" Tom on the other hand acknowledged us by our names. Little things mean a lot and that left a lasting impression with us. Tom Thank You again for all your help!!”

    Stacy S.

  • His knowledge and expertise made a very difficult time in our lives much easier.

    “From start to finish our experience with Mr. Hensel was great. He carefully and thoroughly explained the entire process to us and was always available for any questions or concerns we had. His knowledge and expertise made a very difficult time in our lives much easier. We are very thankful for his help in our situation.”

    Christine and John

  • Thank you very much for getting us through this very hard time in our lives.

    “I just wanted to thank you very much, for getting us through this very hard time in our lives. You did an excellent job. If anyone I know is in need of a lawyer, we will surely give them your name. Again thanks.”

    John and Linda

  • We couldn't have gotten through this difficult process without Tom.

    “We couldn't have gotten through this difficult process without Tom. We evaluated a number of bankruptcy attorneys and found Tom to be the most knowledgeable and compassionate. He takes the time to explain all aspects of the process and answers your questions thoroughly and promptly both in person and via email. He knows the law and ensures that you receive the best treatment possible depending on your particular situation.”

    T & J

  • He always responded quickly and intelligently.

    “Mr. Hensel made a difficult and uncomfortable situation as easy as possible for me. He always responded quickly and intelligently to my questions and never made me feel as if I were bothering him. He explained the unknown aspects of bankruptcy, the court system, and my options in clearly understandable terms. I felt confident that he was handling my case in the best possible manner and in my best possible interests. I feel lucky to have found the Hensel Law Office and I never hesitate to refer others who could use assistance - because I know they will get superior service and help.”

    Kelly