Can you file bankruptcy on credit cards alone?

Can you file bankruptcy on credit cards alone?

While credit card debt is a major reason people wind up filing for bankruptcy, you cannot file for bankruptcy on credit card debt alone, as the law requires that all your debts be listed in the bankruptcy documents.

What happens if a company files for bankruptcy and you have a credit card with them?

If you carry a balance on the card You will still be responsible for paying off your balance, even if a retailer files for bankruptcy. If a store goes under, the balance you owe is still due to the finance company that manages your card.

Can you max out credit cards and file bankruptcy?

You can’t max out credit cards before bankruptcy just because you’re about to file. Bankruptcy provides relief for the honest but unfortunate debtor and debts incurred with the intent to erase them in bankruptcy are not dischargeable.

Can a credit card company object to a bankruptcy?

If you used the credit card to pay for debts that you could not typically get rid of in a bankruptcy case, that debt won’t likely get erased. For instance, if you use your credit card to pay child support, alimony, back taxes, or student loans, the credit card company may object to your discharge.

Why do you need to file bankruptcy for credit card debt?

For most people, credit card debt is the main reason they need to seek debt relief. Credit card debt is typically considered an “unsecured” debt. This means that you don’t have property securing the amount that you owe. This property would usually be traded in to repay the amount that you owe.

Can you keep a credit card in Chapter 7 bankruptcy?

While it generally is not a good idea to keep a credit card in Chapter 7 bankruptcy, in most cases you can do it. But keep in mind that if overspending contributed to your financial problems, you should avoid using credit cards after your bankruptcy.

Do you have to notify credit card companies when you file bankruptcy?

If you have a credit card with a zero balance at the time of your bankruptcy, then you don’t have to list it among your debts. While that also means that you don’t have to notify the credit card company of your bankruptcy filing, chances are it may still find out about your situation.

Can a single spouse declare bankruptcy?

The bankruptcy law allows a married person to file an individual bankruptcy but there will be some impact on the non-filing spouse. You are most likely to face this problem when you have joint debts with a bankruptcy filing spouse and your spouse does not pay a joint debt on time.

Can a widow file bankruptcy?

No, you can’t file bankruptcy jointly with your late spouse. But, you can (and should) make sure that all of their debts are listed on your schedules so any payment obligation you may have to the creditors can be discharged in as part of your case.

Can a dead person claim bankruptcy?

Under Bankruptcy Code 11 U.S.C. Section 109, only an “individual” can file a Chapter 13 Bankruptcy case. Therefore, the estate of the deceased cannot file a Bankruptcy case, and an Executor or Administrator on behalf of the decedent’s estate cannot file a Bankruptcy.

What if someone dies during bankruptcy?

What happens if a debtor dies during the bankruptcy process? In general, when a person dies, his or her heirs do not become responsible for paying the deceased’s debts, unless those debts were shared. An in-the-process bankruptcy is handled out of the estate and is not automatically dismissed when the debtor dies.

What should senior citizens consider when filing for bankruptcy?

Additional issues seniors will want to consider include: Discharging medical debt and credit card bills. These are two of the easiest types of debt to discharge in bankruptcy. In fact, filing for Chapter 7 bankruptcy can wipe out qualifying debt in a few months.

When to file for bankruptcy for credit card debt?

By filing a Chapter 7 bankruptcy case, you can get rid of credit card debt while protecting your property. However, you need to qualify for Chapter 7 by having income that is below the average median income in your state. Written by Attorney Jonathan Petts. What Happens When You Get Behind on Your Credit Card Payments?

Can you file Chapter 7 bankruptcy with social security?

This means you are likely to qualify for Chapter 7 bankruptcy if all or most of your income comes from Social Security. In Chapter 13 bankruptcy, your Social Security income is included when determining how much you must pay each month through your repayment plan.

Is there homestead exemption for seniors in bankruptcy?

Many seniors have significant equity in a home. The homestead exemption protects a certain amount of equity, but the amount varies depending on the laws of the state. In Chapter 7, the trustee will take nonexempt property (including home equity) to pay creditors. (Find out more in the Homestead Exemption in Bankruptcy.)

Additional issues seniors will want to consider include: Discharging medical debt and credit card bills. These are two of the easiest types of debt to discharge in bankruptcy. In fact, filing for Chapter 7 bankruptcy can wipe out qualifying debt in a few months.

What happens to unsecured credit card debt for seniors?

Unsecured credit card debt does not usually pass to heirs, as secured debt often does. Again, there are a few exceptions such as joint accounts and, sometimes, medical bills. It is important that seniors who have significant debt, and their loved ones, know the applicable laws where they live.

By filing a Chapter 7 bankruptcy case, you can get rid of credit card debt while protecting your property. However, you need to qualify for Chapter 7 by having income that is below the average median income in your state. Written by Attorney Jonathan Petts. What Happens When You Get Behind on Your Credit Card Payments?

What can I do with my widow’s life insurance debt?

If the deceased had a life insurance policy, you might use the proceeds to keep paying on the mortgage, or even retired the debt. Another option could be selling the house to satisfy the debt, though that means finding another place to live.

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