29 Sep Student debt forgiveness is here. What about credit cards?
Q. Now that President Biden is forgiving some student debt, I’m hearing that not everyone is happy because not everyone is included. Credit card debt is a big problem. Do you think they would think about forgiving some credit card debt for people who didn’t have student loans?
A. You’re correct that not everyone has student debt.
This forgiveness plan would forgive up to $20,000 per qualified borrower.
Credit card debt, while a real problem, isn’t getting the same kind of attention.
There are options for people who find themselves with more credit card debt than they can manage, said Karina Lucid, a bankruptcy attorney with Lucid Law in Bridgewater.
She said she doesn’t expect to see legislation for credit card relief any time soon, but that complete forgiveness from credit card debt is often available through a Chapter 7 bankruptcy case.
“Chapter 7 can provide 100% debt forgiveness to certain people who qualify and especially those with a lot of general unsecured debt, like credit cards, medical, personal loans and even unsecured SBA loans and certain tax debt,” she said.
She recommends you contact an attorney if you’re unable to keep up with your debt, and that you should talk to that attorney before you attempt a plan with a debt consolidation agency.
“If you do, you’ll most likely pay way more than you should and not get the relief you need,” she said, noting you should be careful to fully understand the consequences before you enter into any consolidation or relief program.
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This story was originally published on Sept. 29, 2022.
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