Filing Bankruptcy on Credit Cards Only
Serious debt can be overwhelming. It can also make it very difficult to pay your expenses. If severe credit card debt is preventing you from keeping up with your bills each month, then filing for bankruptcy might be an option for you.
If credit cards are the one and only source of your debt, you may be curious if you can file bankruptcy on just your credit cards.
Credit cards are a common form of debt eliminated in bankruptcy. However, no two cases are the same. You can receive a free evaluation from an attorney in your area. Simply fill out the form below to get started now.
Chapter 7 or Chapter 13 Bankruptcy?
First, you have to know that Chapter 7 and Chapter 13 are different types of bankruptcy for consumers. In order to wipe away credit card debt, Chapter 7 is the most logical choice. That's because its aim is to discharge or eliminate unsecured debt such as credit card bills.
Chapter 13 is set up as a way to help individuals negotiate a payment plan with their creditors. Debts are not immediately erased under this bankruptcy plan, but repaid at an affordable pace. Chapter 13 can typically involve a wider range of debts than Chapter 7.
Using Chapter 7 for Credit Card Debt
If you have tremendous credit card debt, very few assets and an income below the median income level in your state, then you may be able to file Chapter 7 and discharge your debt. Without any assets of value to liquidate, Chapter 7 could help you erase your credit card bills..
Furthermore, even if you own your house and your car, you may not need to give these possessions up. These items may be exempted in your case, depending on the laws in your state. The purpose of bankruptcy is to help consumers start over, not put them on the street.
Other Debts in Bankruptcy
Chapter 7 is designed to eliminate many unsecured debts, such as medical bills and payday loans. If you have these in addition to credit cards, you may still be able to file for Chapter 7.
If your debts include those secured by property, such as a mortgage or car loan, then you may wish to file Chapter 13, which could allow you to hold on to your property while paying down debt over time.
In some circumstances, you may be able to reaffirm these days (agree to keep them active) while eliminating just your unsecured debts, such as credit cards. A bankruptcy lawyer can help you determine if this is an option worth pursuing in your case.
Ask a Bankruptcy Attorney about Your Credit Card Debt
If you'd like more information on your bankruptcy options and eliminating credit card debts, connect with a lawyer who practices bankruptcy in your state. Just fill out the form below to begin this easy process today.