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Developments Within the Credit Card Industry

Published January 26, 2011 by Erin B. Shank, P.C.

I wanted to blog and let you know of some developments within the credit card industry. As a Waco Bankruptcy Attorney and a Killeen Bankruptcy Attorney, I see more and more credit card debt holders are hiring lawyers to sue customers who are delinquent on their credit cards. In fact, earlier this month I represented eleven of our clients in one day before the bankruptcy trustee and every one of those clients were being sued by a holder of credit card debt when we filed their bankruptcy case. Remember, retaining our law firm prohibits third party bill collectors from contacting you. However, retaining a law firm does not stop a creditor from suing you or, even worse, forgiving that debt and filing a 1099 form with the IRS on your debt that has been forgiven. Bankruptcy stops credit card lawsuits. Additionally, debt discharged in bankruptcy is not taxable income. Since we are seeing more and more lawsuits being filed by credit card debt holders and more and more 1099’s being sent to the IRS by credit card debt holders, we are encouraging our clients to pay their balances with our firm off quickly so that we can try to file their Chapter 7 cases as soon as possible. Income tax refunds are an excellent source of funds with which to get your bankruptcy filed before a lawsuit is filed or before a 1099 is sent to the IRS by holders of credit card on your debt.

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