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Chapter 7 Bankruptcy

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How to File Bankruptcy for Credit Card Debt

Understanding How to File Bankruptcy for Credit Card Debt

How to file bankruptcy for credit card debt is a question many Americans face when overwhelmed with mounting bills and interest. If you’re struggling to keep up with payments, bankruptcy may be a legal solution for relief.

In this guide, we’ll explain the steps involved in filing bankruptcy for credit card debt, what options are available, and how to get help.

Types of Bankruptcy for Credit Card Debt

Before filing for bankruptcy to eliminate credit card debt, it’s helpful to understand the two main types of personal bankruptcy:

Chapter 7 Bankruptcy

  • Often called “liquidation bankruptcy”
  • Wipes out most unsecured debts like credit card balances
  • Typically completed within 3–6 months
  • Requires passing a “means test” based on income

Chapter 13 Bankruptcy

  • Known as “reorganization bankruptcy”
  • Let’s you repay debts over 3–5 years
  • You keep your assets, but must commit to a payment plan
  • Useful if you don’t qualify for Chapter 7 or want to protect property

Choosing the right chapter is crucial when deciding how to approach bankruptcy for credit card balances.

Step-by-Step Guide to Filing Bankruptcy for Credit Card Balances

If you’re ready to move forward, here’s a simplified step-by-step breakdown of how to file bankruptcy for credit card debt:

  1. Gather Financial Documents
    • Collect credit card statements, income records, asset lists, and other debt details.
  2. Take a Credit Counseling Course
    • Mandatory pre-filing course from an approved provider.
  3. Hire a Bankruptcy Attorney (Optional but Recommended)
    • Professionals can ensure your forms are complete and accurate.
  4. File the Bankruptcy Petition
    • Submit forms and schedules to the bankruptcy court.
  5. Attend the 341 Meeting (Creditors Meeting)
    • A short meeting to review your case with a trustee.
  6. Complete Debtor Education Course
    • A second required course is required before debts are discharged.
  7. Receive Your Discharge (if approved)
    • In Chapter 7, your credit card debt may be fully eliminated.
    • In Chapter 13, your payment plan begins.

Understanding these steps can make the process of how to file bankruptcy for credit card debt feel less overwhelming.

Will All Credit Card Debt Be Discharged?

Most credit card balances are dischargeable in bankruptcy, but there are exceptions:

  • Fraudulent Charges: If you used your card knowing you couldn’t repay it
  • Luxury Purchases or Cash Advances: Large amounts within 90 days of filing may not qualify
  • Co-Signed Cards: Your co-signer may still be held liable

If you’re concerned about what qualifies, consult with a bankruptcy professional to fully understand how to file bankruptcy for credit card debt.

Filing Bankruptcy and Rebuilding After Credit Card Debt

Navigating bankruptcy for credit card debt can be a turning point for many facing overwhelming balances. While the process may impact your credit score in the short term, it opens the door to a fresh financial start. With the right steps and support, you can eliminate burdensome debt and begin rebuilding with confidence.

Get Help with Filing Bankruptcy for Credit Card Debt Today

If you’re overwhelmed and unsure how to file bankruptcy for credit card debt, don’t wait. The sooner you get started, the sooner you can regain control of your finances.

Bankruptcy Attorneys offers trusted guidance and free evaluations to help you understand your options and file with confidence. Start your path to relief today.

Frequently Asked Questions (FAQs)

Yes, credit card debt is usually dischargeable under both Chapter 7 and Chapter 13 bankruptcy.

Yes, most credit cards are closed when you file, even if they have a zero balance

Usually no. However, you may be able to apply for secured credit after your case is closed.

Yes. Filing triggers an “automatic stay,” which stops most collection efforts immediately.

Costs vary, but typically include court filing fees and attorney fees. Free evaluations are available to review your case.

Key Takeaways

  • Bankruptcy can eliminate overwhelming credit card debt
  • Chapter 7 and Chapter 13 are the two main options
  • Filing involves credit counseling, paperwork, and court steps
  • Discharge is possible in 3–6 months for Chapter 7 cases
  • Free evaluations are available to help you understand your options

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