Bankruptcy Now - Credit card debt
The most common reason why people file for bankruptcy in Miami is because of Credit Card Debt.  It has been my experience that once someone starts to pay less than their full Credit Card Debt and make minimum payments on their Credit Card Debt, that’s when they begin to have financial trouble.

 Banks make no money when people pay their Credit Card Debt in full.  The interest rates that they charge are so high, they know people who don’t pay their Credit Card Debt in full will make them a fortune.  People who have good credit can borrow money on home loans right now between 2%-3% interest.  Car loans may be a little higher.  The money for a car can be between 3%-5% right now.  But Credit Card Debt in Miami is between 12% on good cards and up to 30% on others.  Borrowing money at that rate is impossible to repay. Once you begin to have to repay Credit Card Debt in Miami back at less than the full payment, it’s time to get a free consultation with a bankruptcy attorney.  People who have come to see me express their regret in not seeing me five years earlier.  The expression “taking a load off” is very appropriate when someone has Credit Card Debt in Miami.  It really is a heavy burden to have to repay a significant Credit Card Debt in Miami. 

It is understandable why people feel badly that they must file for bankruptcy.  It seems like a personal failure to be in that position.  Many people take this personally whereas financial institutions take this solely as a business loss.  These financial institutions don’t feel badly or sad that you are unable to make your Credit Card Debt payments.  In fact, the Internal Revenue Code is set up to give these financial institutions a financial benefit when you fail to make your Credit Card Debt payments.  The Internal Revenue Code allows these financial institutions to not only write off the amount you didn’t pay as a loss to them, but they can reclassify the money you actually paid them while you were making payments to them as interest and penalty payments.  The rest would be principal payments.  That allows them to write off more money.  That’s why these financial institutions don’t really pay that much in income taxes.  Not only do they get to write off their losses, but they will send you a 1099 for the money they say you owe them which you will have to pay tax on.  That is income to you because you borrowed the money, but didn’t pay it back.  However, when a bankruptcy is filed, that income is not taxable.  All you have to do if you have received a 1099 from one of these financial institutions is to notify the IRS that you have filed a bankruptcy, and the money is no longer taxable.    There was recently a hearing in the Senate where Elizabeth Warren, the Senator from Massachusetts, was questioning the CEO of Chase Bank.  Chase made an investment of $4 Billion, which it lost in one year.  The CEO was unconcerned.  Senator Warren was livid.  She wanted to know who was getting fired for making such a poor investment.  The CEO of Chase just smiled and said it was just a bad investment, and that they would make that money back in a year.  Basically, he was saying the loss of $4 Billion was no big deal.  If you look at your Credit Card Debt in Miami like the financial institutions do, there is no failure in having to file for bankruptcy.  It’s a business decision, not a personal one. 

If you hire a Bankruptcy Attorney in Miami, you can be helped with Credit Card Debt as well as many other issues you may have.  Chapter 7 bankruptcy is a relatively simple procedure for the client.  A Miami Bankruptcy Attorney who knows what he/she is doing should make the bankruptcy filing very easy for the client.  A competent Bankruptcy Attorney in Miami should get the documents necessary to send to the Bankruptcy trustee.  That Miami Bankruptcy Attorney will also inform you what is going to happen when you have to go to Court.  There is always a court hearing, but it is very informal.  These days, the hearings are on the phone.  They literally take 2-5 minutes, and then you are done.  The only other thing you will have to do is take a credit counseling course, and wait about three months after your hearing and you will receive a discharge.  That means all of your Credit Card Debts as well as all other dischargeable debts are gone.  If a Chapter 7 Bankruptcy is filed, the case will be over in about six months.   If you are filing a Chapter 13 Bankruptcy, a Miami Bankruptcy Attorney who knows how to file a Chapter 13 Bankruptcy properly, will also make the Bankruptcy filing as stress free as possible.  A Chapter 13 Bankruptcy filing takes 3-5 years to finish.  A Bankruptcy Attorney in Miami should be able to tell you everything that will go on during this period that you are in a Chapter 13 Bankruptcy.  A bankruptcy Attorney in Miami who has experience will be able to walk you through everything during the entire time you are in your Chapter 13 Bankruptcy.  Communication is very important.  If you are having issues which come up, stay in contact with your Bankruptcy Attorney in Miami .  Nothing is too small for you to speak to your Bankruptcy Attorney in Miami about.  Even if you think it’s small or a non-issue, your Miami Bankruptcy Attorney may be very helpful in making sure you fulfill your Chapter 13 Bankruptcy requirements.  Call to schedule a free consultation with a Bankruptcy Attorney in Miami as soon as you can.  That call may save you a lot, and will cost you nothing.