Eliminating Credit Card Debt Through Bankruptcy

How do I eliminate my credit card debt?          
One of your options is to file bankruptcy. Credit card debts can be addressed in both Chapter 7 and Chapter 13 bankruptcy.  However, you may be required to pay a portion or all of the credit card debt in a Chapter 13. Therefore, you should note that you can’t pick and choose which credit cards to include in your bankruptcy- they all must be included.  

If I file for Chapter 7 Bankruptcy, will all my credit card debts be discharged?

As long as those purchases aren’t fraudulent, all of your debts can be discharged. One way a purchase can be deemed fraudulent is if you intentionally misrepresent your situation on application on a new line of credit. The other types of fraudulent purchases are listed below.

What might be considered fraud if my credit card debt is included in my bankruptcy?

If you purchase any luxury products with credit cards in the 90 days before you file bankruptcy, it will be presumed fraudulent and you will still have to pay it back. Cash advances within 75 days before you file are also considered fraudulent. For those debts to be discharged, you will need to prove you intended to pay the debt and reasonably believed you would be able to, which is difficult to do.

Exceptions for Dischargeability of Credit Card Debt

I only have credit card debt, can I still file bankruptcy if it’s just credit cards?

Yes you can! You are not required to have other debts, such as medical bills and registration loans, to file bankruptcy.

Can I keep a credit card if I file bankruptcy?

You will not be able to continue using any current credit cards once you file bankruptcy. However, you should receive plenty of offers for new lines of credit once you file. If you are still unable to get a new credit card, you can open a secured credit card through your bank.

How common is large credit card debt for bankruptcy filers?

While the most common cause of bankruptcy is medical debts, credit card debt is a common side effect of illnesses and injuries. It isn’t unusual for those who need to take long periods off of work to recover to use credit cards to sustain themselves in the meantime.

Will bankruptcy help if I have more than $100,000 in credit card debt?

If you have more than $100,000 in credit card debt with just one creditor, they may object to your debts being discharged. However, this is only an obstacle and not a bar to keep you from filing. You should discuss any large debts with a bankruptcy attorney to ensure that