How do I eliminate my credit card debt?

One course of action that may be available to you is to file bankruptcy. Credit card debt can be discharged in both Chapter 7 and Chapter 13 bankruptcy. Your credit cards may require partial repayment in a Chapter 13, and none at all in Chapter 7. Keep in mind that you can’t pick and choose which of your credit cards will be discharged in your bankruptcy- they must all be included in your case.

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

The only time your credit card debts won’t be discharged in Chapter 7 is if your purchases were fraudulent. Misrepresenting your financial situation on a credit line application is one way for your purchases to be deemed fraudulent. You should discuss your credit card debts with an attorney if you are unsure about whether or not they will be deemed fraudulent.

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

Your trustee may review your credit card statements to make sure that none of your pre-bankruptcy purchases were fraudulent. Your creditors may also bring an adversarial action to prevent their debts from being discharged in your bankruptcy. Luxury purchases of $750 more in the 90 days before your filing will be presumed fraudulent. So will cash advances of $1,000 or more in the 75 days preceding your bankruptcy. You will need to be able to prove you had actual intention to repay the debt and a reasonable belief you would be able to for these debts to be discharged in your bankruptcy.

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 Any Of My Credit Cards If I File Bankruptcy?

You will not be able to keep using your credit cards after filing bankruptcy. Once your case has been discharged, you will most likely receive several offers for new credit cards. If you aren’t approved or don’t want to open new credit cards yet, you can open a secured credit card through your bank or another financial institution.

Is Large Credit Card Debt Common For Bankruptcy Filers

Medical debt is the most common cause of bankruptcy in the United States, but credit card debt can also be incurred as a result of an illness or injury. It isn’t unusual for those who have suffered from a medical emergency to use credit cards to make ends meet while they recover. Credit card debt is also a common symptom of financially stressful events like prolonged unemployment, divorce, and more.

Can I Still File Bankruptcy If I Have More Than $100,000 In Credit Card Debt?

A creditor to whom you owe $100,000 in credit card debt or more may object to your debts being discharged in bankruptcy. This doesn’t mean your creditor will necessarily prevail- it just means that you should discuss your situation with a bankruptcy attorney before your case is filed.

Contact Our Reno Bankruptcy Lawyers

We offer affordable rates and payment plans to work with every budget- you may even qualify for a post-filing plan starting at $0 down! Call or use our online form to schedule your free bankruptcy consultation today.