How to resolve credit card lawsuits using Chapter 7 bankruptcy


Due to increasing interest rates, credit cards are becoming a major problem for Bucks County residents. Having a large amount of debt can be debilitating. the overwhelming feeling of helplessness and stress can worsen when you get sued for an unpaid credit card. The best time to resolve this kind of debt is immediately after receiving notice of the credit card lawsuit - before judgment is entered. You will have the most options to resolve this debt if you contact an attorney prior to judgment.

A judgment from a credit card lawsuit provides extra collection powers to those creditors. Once the credit card judgment is entered, they have the right to execute on that judgment and freeze bank accounts or force a sale of personal property. If you own a home, a credit card judgment in Pennsylvania often becomes a lien against your real estate.

There is hope. Chapter 7 bankruptcy is the fastest and most common form of bankruptcy. Chapter 7 bankruptcy will address most debts, including credit cards, personal loans and medical bills without the need to repay those debts. Once a bankruptcy is filed, the credit card lawsuit will stop, and any collections will cease.

In most cases, the Chapter 7 bankruptcy will discharge the credit card debt, even after judgment, so that you will no longer be liable for the debt.  If the judgment has become a lien against real estate owned, then a special motion within the bankruptcy may need to be filed to remove the judgment lien created by the credit card lawsuit. It is important to speak to a bankruptcy lawyer to receive the proper advice.

The Law Offices of Michael Schwartz focuses on bankruptcy and debt relief matters, so you can be confident you are receiving quality legal advice.


A credit card judgment filed in Bucks County will provide the creditor with execution powers that will allow the creditor to freeze bank accounts and sell personal property. It is therefore important that these credit card judgments are addressed to avoid these types of actions.

When the amounts of the judgment are relatively small, Chapter 7 bankruptcy may not be appropriate. In these cases, the Law Office of Michael Schwartz may suggest an alternative to bankruptcy, like debt negotiation. Michael Schwartz is experienced in negotiating with creditors to get a fair settlement to a credit card judgment. By agreeing to pay a lump sum payment to a creditor, it is typical to settle the debt for something less than the full amount of the judgment. The creditor is typically willing to take something less than the full amount in exchange for the lump sum payment being made within a reasonable time frame. 

It is important to note that there may be tax consequences for settling a credit card judgment for less than the full amount. 

Lastly, in some cases, Chapter 13 bankruptcy may be the best way to resolve a credit card judgment. By filing Chapter 13 bankruptcy, the creditor will be forced into a payment plan over five years. In may cases, this payment plan will pay the credit card judgment less than the full amount with the remainder being discharged. 

For a free consultation to discuss the best way to resolve a credit card judgment, call attorney Michael Schwartz at 215-396-7900. Michael Schwartz is a Bucks County bankruptcy lawyer who assists individuals who have credit card judgments. Make Michael Schwartz your bankruptcy lawyer near me!

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