Filing Credit Card Bankruptcy

Filing credit card bankruptcy can help you if you are experience the overwhelming experience of excessive debt. You may be feeling like you can never get out of your situation. Your creditors may be hassling you with phone calls. You may be getting further and further into debt because you cannot afford to pay more than the minimum payments on your credit cards. Bankruptcy can help you by discharging some or all of your debt, depending on your circumstances and the type of bankruptcy you file.

What Kind of Bankruptcy Is Right for You?

Deciding which chapter to file under during bankruptcy is an important step in the process. An attorney can help you figure out which chapter is right for you. Generally, individuals seeking discharge of debts such as credit card debt will file either a chapter 7 or chapter 13 bankruptcy. You will need to evaluate whether you have unprotected assets you wish to keep, whether your income will allow you to qualify for bankruptcy, and any other financial considerations in making this decision.

• Chapter 7 bankruptcy is used to discharge all debts included completely in most cases. This is useful for individuals who have no or little assets and a modest income.
• Chapter 13 bankruptcy discharges a portion of debts, leaving the debtor to pay a monthly payment for a number of years, after which the debt is discharged. This is useful for individuals who have a moderate income, excessive debts, and some assets.

Creditors Contesting Discharge

You should be aware that creditors have the right to contest your bankruptcy petition. Any activity that would imply that you intentionally accrued debt without planning to repay it gives them reason to contest your petition. The following activities may provide adequate reason for the court to deny your petition should a creditor contest:

• Cash advances;
• Use of credit cards for travel or vacation expenses;
• Excessive use of cards in the months leading up to bankruptcy;
• Use of credit cards to pay other credit cards; and
• Exceeding credit card limits.

Getting Legal Help

It is important to get the help of an experienced bankruptcy attorney to make sure that you file the paperwork properly, include all required information, and protect any assets you may have. An attorney will make the process of bankruptcy more manageable. You will feel less stressed and more confident going through bankruptcy with an attorney to advocate for you in court.