Can I file Bankruptcy using my credit card

Bankruptcy on your Credit CardThe new laws regarding bankruptcy can be more than confusing. In fact, thanks to the marketing messages of the credit card industry and other sources of misinformation, quite a few debtors believe that credit card debt cannot be discharged under bankruptcy.

However, this information is totally wrong. Credit card debt is able to be discharged with a filing for bankruptcy. This applies to many other forms of debt, as well, which consumers have begun to believe cannot be discharged.

In fact, if you will be filing for bankruptcy for any reason, you must list all of your credit card debt at that time, even if the financial pressure from these debts is not the ultimate reason for your decision.

Chapter 7 is the most commonly sought form of bankruptcy. This is because it results in a discharge of most debts (including that credit card debt that’s haunting you). However, the new federal laws make Chapter 7 a bit more difficult to attain, and actually encourages many consumers to file Chapter 13. What is Chapter 13, then? How does this type of filing affect your credit card debt and other debts?

Basically, a Chapter 13 bankruptcy is a consolidation of your debt and the creation of a repayment plan, which contrasts with the debt forgiveness of the Chapter 7 filing.

How do you know what type of bankruptcy filing is right for your particular situation? Should you repay your debts, or do you have a chance that your debts will be discharged?

The best solution to your needs is to contact the  best bankruptcy attorney you can. He or she will be able to tell you what form of bankruptcy will give you the financial relief that you need and how your credit card debt should be handled.

Related links