Can I file bankruptcy on my credit cards only?
Credit card debt can quickly spiral out of control, especially when you’re juggling multiple payments and high interest rates. Many individuals find themselves asking: “Can I file for bankruptcy on my credit cards only?” The short answer is yes—you can file for bankruptcy to address credit card debt, but bankruptcy applies to all your eligible debts, not just your credit cards. Let’s explore what that means and how it works with the help of Ursulova Law Offices, P.C..
Understanding How Bankruptcy Affects Credit Card Debt
Bankruptcy doesn’t allow you to single out just your credit card debt. When you file, you must include all your debts, including credit cards, medical bills, personal loans, and more. However, credit card debt, being unsecured, is often one of the easiest to discharge through bankruptcy.
Most people file under Chapter 7 or Chapter 13 bankruptcy. Chapter 7 allows you to discharge most unsecured debts, such as credit card balances, while Chapter 13 creates a structured repayment plan over several years. If you’re specifically worried about your credit cards, it’s crucial to consult with a bankruptcy lawyer in Brighton Beach to determine the best approach for your situation.
You can learn more about how bankruptcy works and our legal services here.
Credit Card Debt and Bankruptcy Eligibility
Credit card debt is categorized as unsecured debt, meaning there’s no collateral backing it. As a result, it is typically dischargeable in bankruptcy. However, recent credit card purchases or cash advances may be excluded from discharge, as they could be deemed as fraudulent. This is why it’s essential to get sound advice from a Brighton Beach bankruptcy lawyer before filing, especially if you’ve made significant credit card purchases recently.
If you want to understand more about how our firm assists clients with bankruptcy cases, visit our attorney profiles.
Immediate Relief from Credit Card Debt Through Bankruptcy
Filing for bankruptcy offers immediate relief from creditor harassment through an automatic stay, which stops creditors from calling, sending collection letters, or suing you. This automatic stay can be a significant relief, especially if you’re overwhelmed by credit card debt. By filing for Chapter 7, your credit card debt may be entirely wiped out, offering a fresh financial start.
For more detailed advice on how to protect yourself and resolve your credit card issues through bankruptcy, consult with a bankruptcy attorney in New Brighton to explore your options. You can also contact us directly to set up a consultation.
Long-Term Effects of Filing for Bankruptcy on Credit Card Debt
While bankruptcy can help you get rid of credit card debt, it does come with consequences. Bankruptcy will remain on your credit report for up to 10 years, which can make it harder to obtain new credit during that period. However, for many, the benefits of discharging heavy credit card debt far outweigh the temporary damage to their credit score.
Exploring your options with a Brooklyn bankruptcy attorney will equip you with the knowledge needed to make the best decision for your financial future. Our firm offers valuable guidance throughout the bankruptcy process, ensuring that you understand each step and are well-positioned for a fresh start. You can learn more about our approach to bankruptcy and how we can assist you.
Final Thoughts: Filing Bankruptcy for Credit Card Debt
If credit card debt has left you feeling trapped, filing for bankruptcy may be the solution. While you cannot file for bankruptcy solely on your credit cards, you can eliminate credit card debt as part of a broader bankruptcy case. Ursulova Law Offices, P.C. has extensive experience in handling bankruptcy cases and can guide you through each step of the process. Our firm can help you determine whether Chapter 7 or Chapter 13 bankruptcy is right for your situation and explain how it will impact your credit card debt. For personalized advice on tackling your financial challenges, contact us today to schedule a consultation. Our firm is committed to helping you achieve financial freedom.
