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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

  • You made a difficult experience so much easier.

    “Back a few years ago, you helped me through a bankruptcy. I still tell people how you made a difficult experience so much easier, with your clarity, support, and friendly approach to the law. I'm still very appreciative for all your help – it really helped to pull me out of a difficult place and put my life back on track.”

    Eric

  • Professional, competent, empathetic attorney.

    “My husband and I were forced into a position to file for Chapter 7 bankruptcy. We were devastated and mortified that we had to choose that route, but Tom eased our stress about the filing and court hearing process, as he thoroughly explained what Chapter 7 entails, as well as exactly what to expect during and after the filing process; he was accurate on each point that he advised us on. Tom also kept in frequent contact with us and responded quickly to any questions or concerns that we had while we worked with him. Tom's expertise and tact was invaluable for us, and we will absolutely recommend him to any of our friends and relatives that may find themselves in similar positions to ours. Thank you, Tom, for your dedicated help during this process.”

    EJO

  • 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

  • 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.

  • Tom was the most professional.

    “I researched 3 attorneys before signing with the Hensel Law Office for my bankruptcy proceedings. Tom was the most professional and he explained all of my questions without trying to make a quick buck on me. I would recommend Hensel Law Office to my friends or family going through a similar difficult situation.”

    Jerry