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How to File Bankruptcy on Credit Cards
How to File Bankruptcy on Credit Cards: What You Need to Know How to file bankruptcy on credit cards is
July 18, 2025
How to File Bankruptcy on Credit Cards
How to File Bankruptcy on Credit Cards: What You Need to Know
How to file bankruptcy on credit cards is a common question among people overwhelmed by high-interest debt. If you’re drowning in monthly payments and falling behind, bankruptcy may offer a fresh financial start. In this guide, we explain when and how credit card debt can be discharged and which bankruptcy options are best.
Understanding the Role of Bankruptcy in Credit Card Debt
Credit card debt is considered unsecured debt, meaning it’s not tied to any property. Because of this, it’s often one of the first debts wiped out in a bankruptcy case. Here’s how the process works under each bankruptcy type:
Chapter 7 Bankruptcy: Quick Credit Card Relief
- Best for people with low income or few assets
- Discharges most unsecured debts, including credit cards
- Takes 3–6 months to complete
- You may lose non-exempt assets, but keep essentials like your home or car if they qualify under state exemptions
Chapter 13 Bankruptcy: Structured Repayment
- Best for those with steady income or valuable property to protect
- Sets up a 3–5 year repayment plan
- May reduce your credit card balance and stop interest
- After completion, the remaining unsecured credit card debt is typically discharged
Step-by-Step Guide: How to File Bankruptcy on Credit Cards
Assess Your Debt Situation
Before filing, take a detailed inventory of your credit card balances, interest rates, and income. Ask yourself if minimum payments are sustainable.
Take the Mandatory Credit Counseling Course
All filers must complete a court-approved credit counseling session within 180 days of filing.
Choose the Right Bankruptcy Chapter
Determine whether Chapter 7 or Chapter 13 is the best fit. A means test will help assess if you qualify for Chapter 7.
Gather and File Bankruptcy Forms
- Include a list of creditors, income, expenses, and assets
- Use the official forms from the U.S. Bankruptcy Court
- File with your local bankruptcy court (electronically or in person)
Attend the 341 Meeting of Creditors
You’ll answer questions about your finances under oath, but creditors rarely attend.
Receive Discharge (if eligible)
In Chapter 7, this typically happens within a few months. In Chapter 13, discharge follows the completion of your repayment plan.
How Bankruptcy Affects Credit Cards and Credit Score
Filing for bankruptcy on credit cards will impact your credit score. Chapter 7 stays on your credit report for 10 years, and Chapter 13 for 7 years. However, eliminating overwhelming debt can put you in a better position to rebuild your score over time.
You’ll lose all active credit cards included in the filing, but you may begin receiving new offers within 1–2 years if you demonstrate consistent income and low debt.
Rebuild Smart: Post-Bankruptcy Credit Tips
- Create a monthly budget and stick to it
- Open a secured credit card to re-establish payment history
- Pay all bills on time
- Avoid unnecessary credit applications
- Save for emergencies to prevent future debt traps
Get Help Filing Bankruptcy on Credit Cards Today
Filing bankruptcy can feel overwhelming, but you don’t have to navigate it alone. A knowledgeable bankruptcy attorney can help you understand how to file bankruptcy on credit cards and protect your financial future. The right guidance can reduce stress, avoid mistakes, and lead to a smoother recovery.
Frequently Asked Questions (FAQs)
1. Can I keep any credit cards if I file bankruptcy?
No, most credit card accounts will be closed upon filing. Creditors typically cancel open accounts during the process.
2. Does bankruptcy wipe out all credit card debt?
In most cases, yes. Unless the charges were fraudulent or made shortly before filing, credit card debt is dischargeable.
3. Will my spouse’s credit be affected if I file alone?
Only if the credit card debt is jointly held. Individual bankruptcy typically does not impact a spouse’s separate credit history.
4. Can I choose which credit cards to include in bankruptcy?
No, you must include all credit card debts. Selectively omitting creditors is not allowed.
5. How soon can I get a credit card after bankruptcy?
Many people receive secured or subprime credit card offers within 12–18 months of discharge if they demonstrate responsible financial habits.
Key Takeaways
- Filing for bankruptcy on credit cards can eliminate high-interest debt and give you a fresh start.
- Chapter 7 is faster, but Chapter 13 offers more protection for valuable assets.
- You must complete credit counseling and a means test before filing.
- Bankruptcy affects your credit but offers a path to long-term financial health.
- A bankruptcy attorney can guide you through the process for better outcomes.
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