Respected Tennessee Law Firm Assists With Credit Card Debt Relief
Skilled Knoxville attorney offers strategies for discharging unsecured debt
At the office of William E. Maddox, Jr. LLC, Attorney at Law in Knoxville, I have seen how easy it is for Tennessee residents from all walks of life to see their credit card debt spiral out of control. A car repair, medical bill, school purchase or even daily necessities can tip the scales enough to make it impossible to pay your bills on time. If your credit card has a high interest rate, debt can quickly explode and become overwhelming. In these situations, my firm can help you explore whether bankruptcy or a negotiated settlement is the best way to resolve your debt problem.
Experienced lawyer explains how bankruptcy can eliminate credit card debt
People who have considerable credit card balances may find filing for bankruptcy to be a preferable alternative to years of making minimum payments while incurring more debt, interest and penalties. Credit card balances are dischargeable, meaning that they are eligible for cancellation through bankruptcy.
Credit card debt is typically unsecured, so that purchases made with the credit card cannot be repossessed by the lender to satisfy the debt. There are some exceptions however, such as when companies issue their own credit cards and include terms in the credit card agreement that give them a legal claim to products purchased with the card.
Unsecured credit card debt is considered a nonpriority debt. In bankruptcy, your nonpriority debts are only repaid after you pay your priority debts. Priority debts include but are not limited to certain income taxes, government-issued student loans and court-ordered payments for child support, alimony and civil litigation. In a Chapter 13 repayment plan, secured debts such as mortgages and car loans are usually addressed before nonpriority debts.
When you file for bankruptcy, your active credit cards will likely be cancelled and for some time it might be difficult to gain approval for a new line of credit or loan. Your credit score will be lowered and might take some time to restore. This negative credit impact can still be more beneficial than carrying the burden of owing substantial debt and interest for years on end. I can help you understand what bankruptcy would look like for you and whether there are other suitable methods of tackling your money concerns.
Skilled advocate spearheads settlement negotiations with credit companies
One way to avoid filing for bankruptcy is by negotiating a settlement with your credit card company. The company may be willing to work with you to come up with a creative solution that allows them to collect what you can realistically pay. An agreement may allow you to reduce your debt by being forgiven for late fees, afforded a lower interest rate or allowed a lesser monthly minimum payment. A debt management plan may extend the period of time over which you can make payments and might lower your overall obligation as long as you adhere to the terms of the agreement.
Each debt relief option has its upsides and downsides. With more than 25 years of experience in my field, I can offer legal advice tailored to your case. My firm advises clients during settlement negotiations with creditors and pursues the most favorable terms for repayment.
Contact a dedicated Knoxville credit card debt relief lawyer today for a free consultation
Based in Knoxville, Tennessee, at the office of William E. Maddox, Jr. LLC, I advise and represent East Tennessee community members grappling with credit card debt. To schedule a free initial consultation and learn how I may be able to help you, call 865-293-4953 or contact me online.