Credit Card Debt In Relation to Chapter 7

Those who have experienced serious debt problems typically have a wide variety of debt. However, one of the most common and troubling types of debt is credit card debt. It is not unusual for those seeking relief from their debts with Chapter 7 Bankruptcy to have a large amount of credit card debt. While different individuals amass credit card debt for many different reasons, the successful completion of a Chapter 7 Bankruptcy case will result in the compete elimination of all credit card debt. Like with other types of debt, once a Chapter 7 Bankruptcy is filed a credit card company, and their collection agents and attorneys cannot collect from you

Credit card debt is considered a type of unsecured debt that can be eliminated, or “discharged,” upon the successful conclusion of a Chapter 7 Bankruptcy case. The amount of credit card debt you have has no impact on whether or not it can be eliminated in a Chapter 7 Bankruptcy. For example, it does not matter if you have $1,000.00 in credit card debt or you have $100,000.00 in credit car debt, the credit card debt will be completely eliminated. Even if your credit card debt has been referred to a collection agency or attorney for collection activity, you can still eliminate that credit card debt in a Chapter 7 Bankruptcy. Even if a credit card company has filed a lawsuit against you or filed a wage garnishment against you before you file a Chapter 7 Bankruptcy, you can still eliminate that credit card debt in your Chapter 7 Bankruptcy. The successful completion of a Chapter 7 Bankruptcy will eliminate pre-filing credit card debt once and for all!

Under some limited circumstances, based upon your behavior before the filing of a Chapter 7 Bankruptcy, some of your credit car debt might not be discharged. For instance, if you have used a credit card to make a large purchase or transferred a balance of another credit card right before filing for Chapter 7 Bankruptcy, your credit card company can allege you have committed fraud. Your credit card company will argue, in a federal lawsuit know as an adversary proceeding, that you have run up your credit card balances with no intention of paying it back. Using of your credit card within 90 days of filing is presumptively fraud! This may prevent the debt of that particular credit card from being eliminated! If you are having trouble making your payments and are considering bankruptcy, you should stop using credit cards. This will prevent allegations of fraud and potential discharge problems.

While the law regarding the ability to eliminate, or discharge, some types of debt changed in October 2005, the ability to eliminate credit card debt in a Chapter 7 Bankruptcy has remained the same. In other words, those people who filed for Chapter 7 Bankruptcy after the law changes of 2005 can eliminate their credit card debt in very same way that those who filed a Chapter 7 Bankruptcy before the law changed in October 2005. Do not believe the rumors! You can still eliminate your credit car debt in a Chapter 7 Bankruptcy!

Contact a Legal Helpers attorney today to find out more about how a Chapter 7 Bankruptcy can eliminate all of your credit car debt.

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