Can I Choose What Credit Card To Include in My Bankruptcy?

Are you preparing for bankruptcy filing and wondering – can I keep credit cards in bankruptcy? Conscientious planning before filing for bankruptcy is essential to protecting your financial future.

At Ursulova Law Offices, we understand the stress and confusion you’re feeling and can guide you through bankruptcy and credit cards. By the end of this guide, you’ll have a better understanding of what to expect when filing for bankruptcy, as well as the specifics of discharging debts.

What Is a Bankruptcy Discharge?

The bankruptcy discharge process is a legal procedure where the court removes debts from an individual’s credit reports. Once discharged, the debtor no longer pays the creditors or their collection agencies.

However, it’s crucial to note that some types of debt aren’t eligible for discharge, such as student loans, income taxes, and child support. It’s also important to note that not all creditors must honor the discharge. This can vary between state laws and creditors.

Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy

When it comes to weighing whether or not to move forward with bankruptcy, the first step is to determine which type of bankruptcy you should pursue. Chapter 7 and Chapter 13 are the primary types of consumer bankruptcies available in the United States. Both types offer debt relief, but they can vary significantly in terms of eligibility requirements and discharge processes.

Chapter 7 Bankruptcy

As the most common type of consumer bankruptcy, Chapter 7 allows the debtor to discharge all unsecured debts (including credit cards, medical bills, and payday loans). This is the most prominent type of bankruptcy, and it involves liquidating your nonexempt assets in order to pay back creditors.

Chapter 13 Bankruptcy

This type of bankruptcy is apt for those with a steady income who need help managing their debt. It can also be used to stop foreclosure proceedings and to set up payment plans with creditors. Unlike Chapter 7, Chapter 13 allows you to keep your assets and make a plan to repay creditors over a three-to-five-year period.

Can I Keep Credit Cards in Bankruptcy and Choose What To Include?

While many people assume they can pick and choose which credit cards to include in their bankruptcy, this is not the case. All credit card debt must be included in a bankruptcy filing as it is considered unsecured debt.

However, depending on your situation, you may be able to negotiate with creditors prior to filing for bankruptcy. This could involve offering a lump sum payment or agreeing to a repayment plan.

Some types of bankruptcy require you to list all of your creditors, including those you have already paid or settled with. This can help ensure that the bankruptcy process is as smooth and efficient as possible.

If you’re considering filing for some type of bankruptcy, it’s important to understand the specifics and the effects it’ll have on your credit score. At Ursulova Law Offices, we can assist you with a Brighton Beach bankruptcy lawyer and provide you with the support and knowledge to navigate the process of filing for bankruptcy. Don’t navigate bankruptcy alone. Ursulova Law Offices will help you make an informed decision about your financial future. We’re here to address any questions about bankruptcy and credit cards and guide you through the process every step of the way. Contact us today to set up a consultation.