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Credit Card Debt and Bankruptcy
Basics: Can you get rid of Credit Card Debt in Bankruptcy
Credit card debt is the most common type of debt people like you have and carry. Why? Because the big credit card companies and banks have been seducing you with offers of new credit cards, lower interest rates, courtesy checks and cash advances for years.
Credit Card Bankruptcy
In most cases, credit card debt almost always dischargable in bankruptcy (meaning that you can get rid of it). You will likely not have to repay your credit cards in a Chapter 7 bankruptcy. However, you will have to be careful that there are no elements of bankruptcy fraud surrounding your case, or a judge will likely not allow you to discharge your credit card debt in credit card bankruptcy.
Recent use of the credit cards is a problem, and can lead to a Motion to Determine Nondischargability under 11 USC 523(a). These are the exceptions to discharge, and fraud is typically a big one. No you can’t go on a shopping spree and then file bankruptcy. No you can’t transfer all your buddy’s credit cards onto yours before filing bankruptcy. These are bad things.
Don’t take a chance. Contact a Los Angeles bankruptcy attorney to ensure you get your successful discharge.