Many Americans, likely more than you think, struggle to pay down their credit card bills. If you find yourself in this position, any bankruptcy attorney will likely recommend that you file for bankruptcy. While you may believe there to be a stigma with declaring bankruptcy, this is probably the best financial decision you can possibly make in your current financial situation. Continue reading to learn exactly how to calculate your credit card debt when filing for bankruptcy and how an experienced bankruptcy attorney in Rockland County at the Law Offices of Allen A. Kolber, Esq., can help you with these calculations.
How do I calculate my credit card debt when filing for bankruptcy?
When filing for bankruptcy, calculating your credit card debt is relatively straightforward. But before all else, you will need to collect the following documents to base your calculations off of:
- Your pay stubs from the past six months.
- Your federal income tax returns from the past two years.
- Your bills that are currently due or past due.
- Your most recent credit report.
- Any documents sent by collectors or creditors.
- Any documents regarding collection lawsuits placed against you.
Then, you will need to value the following expenses, if applicable:
- Your varying insurance premiums.
- Your medical copays.
- Your car loan(s) or lease(s) payments.
- Your mortgage payments.
- Your utility bills.
- Your cable, internet, and phone bills.
- Your miscellaneous personal expenses:
- Commute and travel.
- Groceries and clothing.
- Gifts to religious institutions or charities.
And as far as calculating your assets goes, you will need to list the worth of everything you own, including the following, if applicable:
- Your personal items (i.e., household goods and clothing).
- Your high-value items (i.e., antiques, art, collectibles, and jewelry).
- Your property and car(s).
How will filing for bankruptcy clear my credit card debt?
After finalizing these calculations and filing for bankruptcy, you will need to wait for the deadline for creditors to object to discharge to pass. And once it does, the New York court will enter a discharge order. With this, you will no longer be responsible for paying back non-priority unsecured debt, which will likely include credit card debt, along with personal loans and medical debt.
Rest assured, our firm will not only assist you with calculating your credit card debt but with handling the entire process. This is why we recommend that you reach out to a skilled Rockland County bankruptcy attorney as soon as you can.
Contact our experienced New York firm
If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.