For many people, unmanageable credit card debt is a big factor in their decision to file for Chapter 7 or Chapter 13 bankruptcy. Before you file, make sure you understand how Chapter 7 and Chapter 13 bankruptcy will treat your credit card debt. In most instances, it will be wiped out at the end of your bankruptcy -- but not always. Learn when you might be on the hook for your credit card debt after bankruptcy, how much of it you'll have to repay in your Chapter 13 repayment plan, and what your chances are of getting a new credit card when your bankruptcy is over.
Credit Card Debt in Chapter 13 Bankruptcy
How much of your credit card debt you must pay through your Chapter 13 bankruptcy plan depends on a number of factors. Whatever amount is left at the end of your repayment period will be discharged (wiped out).
Can I Keep a Credit Card In My Chapter 7 Bankruptcy?
You'll likely have to give up all of your credit cards if you file for Chapter 7 bankruptcy, but you can start rebuilding your credit once your case is closed.
Recent Luxury Debts and Cash Advances: Can You Get Rid of Them in Bankruptcy?
If you file for bankruptcy, you might not be able to get rid of recent cash advances or credit card charges for luxury items.
Using Your Credit Cards for Luxury Purchases Before Bankruptcy
If you use your credit card to buy luxury goods before you file bankruptcy, you run the risk of having to repay the debt.
Can I Run Up my Credit Card Balances Before I File Bankruptcy?
If you run up your credit card balances right before filing for bankruptcy, the debt might not be wiped out by your bankruptcy.
Do I have to surrender credit cards at my bankruptcy 341 hearing?
In general, you are not required to surrender your credit cards at your bankruptcy 341 hearing (also called the meeting of creditors). Depending on where you live, certain bankruptcy courts or trustees may still ask you to turn them over.