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Chapter 7 Bankruptcy

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How to File for Bankruptcy for Credit Card Debt: A Step-by-Step Guide

How to File for Bankruptcy for Credit Card Debt the Right Way

If you’re overwhelmed by monthly payments, you may be wondering how to file for bankruptcy for credit card debt. Credit cards are among the most common forms of unsecured debt, and they’re also fully dischargeable in bankruptcy.

Knowing your options under Chapter 7 or Chapter 13 can help you stop collections, protect your assets, and finally get a financial reset.

Step-by-Step: How to File for Bankruptcy for Credit Card Debt

Review Your Debt and Finances

Start by taking a full inventory of your credit card debt, income, assets, and monthly expenses. This will help determine which bankruptcy chapter fits your situation.

Choose the Right Chapter

  • Chapter 7: Ideal for low-income individuals. It discharges unsecured debts like credit card balances in as little as 3–6 months.
  • Chapter 13: Better if you have a regular income and want to keep property or catch up on secured debts. You’ll repay a portion of what you owe over 3–5 years.

Understanding how to file for bankruptcy for credit card debt includes choosing the path that offers the most protection and long-term relief.

Complete Credit Counseling

Before you file, you must complete a credit counseling course approved by the U.S. Trustee Program. This is a required step and usually takes 60–90 minutes online.

File Bankruptcy Forms

You or your bankruptcy attorney will file a petition and schedules listing your debts, assets, income, and expenses with the bankruptcy court. Filing triggers the automatic stay, which stops:

Attend the 341 Meeting

Also called the meeting of creditors, this hearing allows the bankruptcy trustee (and creditors, if they attend) to ask questions about your case. It usually lasts 10–15 minutes.

What Happens to Credit Card Debt in Bankruptcy?

If you’re asking how to file for bankruptcy for credit card debt, it’s likely because you’re drowning in high-interest balances. Here’s what bankruptcy can do:

Chapter 7

  • Credit card debt is typically fully discharged.
  • No repayment is required unless fraud is involved.
  • You must pass the means test to qualify.

Chapter 13

  • Credit card debt is grouped with other unsecured debts.
  • You repay a portion over time, and any remaining balance is discharged at the end.
  • You keep your assets as long as you stick to your plan.

How to File for Bankruptcy for Credit Card Debt and Rebuild Credit

Filing bankruptcy will affect your credit score, but many people already have low scores due to missed payments. The benefits:

  • Zero balances on discharged credit cards
  • New start without interest snowballing
  • Opportunity to rebuild credit within 12–24 months

You can start improving your score post-bankruptcy by:

  • Applying for a secured credit card
  • Keeping balances low
  • Making all payments on time

How to File for Bankruptcy for Credit Card Debt and Protect Your Future

If you’re struggling with high-interest balances, knowing how to file for bankruptcy for credit card debt can be a game-changer. Whether you choose Chapter 7 for fast discharge or Chapter 13 for structured repayment, the goal is the same: financial freedom and a chance to rebuild.

Get Help with How to File for Bankruptcy for Credit Card Debt

Still asking how to file for bankruptcy for credit card debt? The team at Bankruptcy Attorneys can walk you through your options, protect your rights, and ensure your filing goes smoothly. Get a free evaluation today and take the first step toward a debt-free future.

Frequently Asked Questions (FAQs)

Yes, most credit card debt is fully dischargeable under Chapter 7 or partially repaid under Chapter 13.

Recent large purchases may be flagged as fraudulent and not discharged. Timing matters—consult a lawyer first.

Yes, they’ll be closed, but you can rebuild credit over time with secured cards or new lines.

Most creditors will close your accounts automatically, even if you have a zero balance.

If you qualify for Chapter 7 or have too much debt to manage, bankruptcy may provide faster and more complete relief.

Key Takeaways

  • Bankruptcy can eliminate or reduce credit card debt.
  • Chapter 7 offers full discharge; Chapter 13 offers structured repayment.
  • Filing triggers an automatic stay to stop collections.
  • Credit counseling and a court petition are required steps.
  • Bankruptcy helps many rebuild financially within 1–2 years.

Start Your Free Bankruptcy Evaluation

Step 1 of 6

What is your total debt?

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What is your total monthly income?

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Do You Own Real Estate?

Step 4 of 6

What is the estimated value of your assets?

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Is an attorney or advocate already helping you with your bankruptcy?

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