Bankruptcy Credit Card Updates

Mar 9th, 2014 | By | Category: Info

The answer is, in most all cases, no. There are just a few limited exceptions to the state that unsecured credit cards are discharged in bankruptcy. Even though creditors may tell you otherwise, they’re usually wrong, and much of the time they’re i’m trying to get you to pay a debt that legally you have no requirement to pay.

Sometimes creditors will say to you that it does not count if you file bankruptcy because you’ll still owe the credit card after your case is over. This is almost never the case. It is true that you will be able sometimes agree to pay the debt, by signing a reaffirmation agreement, but much of the time these credit cards aren’t repaid. Usually, reaffirmation agreements only apply to secured debts, like those which have property for collateral like a house or car.

On the other hand ‘secured’ credit cards are backed up by collateral specifically designated to pay back the credit card debt in case of default. Usually this means having a set sum of money in a collateral account that corresponds to the credit limit on the ‘secured’ card.

Furthermore…

If you pay your taxes with a credit card then normally you’re not going to be able to perform the credit cards in your bankruptcy. This doesn’t happen very often. Also, if you have made charges on your credit card and obtained the credit through fraud, this wouldn’t be discharged. And, if you have charged more than $600 for luxury goods or services under the three months before filing the debt won’t be discharged.

So, the good news is that credit cards are discharged in bankruptcy in almost every single case in the creditors who claim otherwise are simply trying to scare money out of you. The best thing you can do if you file bankruptcy and you have question about whether or not you still a credit card debt is to verify with your attorney.

Frequently, consumers want to maintain a credit card or ‘save’ a credit card and not list it in their bankruptcy. The main reason that they want to achieve this is so that they are able to be able to have a credit card after their bankruptcy is filed. They are afraid that, in view of the bankruptcy filing they’ll not be entitled to a new credit card. While this was never actually true, it is clearly not true today.

Debtors are able to obtain a credit card right after they file their bankruptcy case. Actually, we know that consumers get lots of offers of new credit right after their bankruptcy is filed. Creditors understand that these consumers no longer owe all of the debt that they used to owe. Consumers are actually better credit risks after they file bankruptcy case than they were before, for this reason.

QUESTION: Can I file bankruptcy on one credit card?
I have a credit card with a $15,000 balance. The minimun payment due is too high and I can't afford it.Can I file bankruptcy on this one credit card?

  • The previous answer is correct. You can not file on only one credit card. That is unless that credit card is all you owe and if so it is very unlikely that Bankruptcy Court would approve your petition. If you can not pay the bill your best option is to contact the credit card company and advise them of this and why. Then seek out a non-profit consumer credit counseling agency to help negotiate with the credit card company. In many cases credit counselors can get intrest rates reduced and sometime portions of the balance forgiven. Most important, use a NON-profit counseling agency. There have been an explosion of for profit agencies and some have done more hurt than help.

  • No, you have to cover all of them.

  • No way, you can't do that.

  • no, & you would definetly benefit from some credit counseling


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