Discharging Credit Card Debts in Bankruptcy

Minnesota's Bankruptcy Law Firm for More Than 40 Years

When you file Chapter 7 or Chapter 13 bankruptcy, you will most likely include credit card debt on your list of debts to be discharged or restructured. Credit card debt is pervasive in our society and is one of the ways that many of our clients with debt problems have tried to cope in the months and years preceding consideration of bankruptcy.

Sometimes, credit card debt gets out of control simply because creditors are overzealous in offering new credit cards to consumers. With a wallet full of credit cards, a consumer can develop a misconception that credit equals means. In fact, a large number of credit cards or high credit limits can spell disaster even for well-intentioned consumers with every intention of repaying their debts.

Have you already attempted to deal with your credit card debt by negotiating a reduction in interest or otherwise settling the debt privately with the lending bank? Some debtors have found solutions through direct negotiations with creditors.

However, your debts may be too large to make debt settlement a viable solution. You may have concluded that bankruptcy is the most reasonable solution. As you prepare to file bankruptcy, your bankruptcy attorney will ask you to list and document all debts, including credit card balances. When you file bankruptcy, you can expect trouble from the bankruptcy trustee if:

  • You have many charges on your credit card bills in the days and weeks preceding your bankruptcy filing. (In fact, if you have charged more than $500 within 90 days of your bankruptcy, the overage will not be dischargeable.)
  • Disturbing patterns such as cash advances and frequent balance transfers are apparent in your credit card account statements.

If a creditor does object to the discharge of its credit card debts, it is not likely to derail your bankruptcy, although you may offer a settlement plan to repay certain debts or portions of debt. With an experienced lawyer from Prescott Pearson & Tande, PA, by your side, we are confident that you can avoid problems with the bankruptcy court and creditors as you file bankruptcy and address any issues that arise in connection with your credit card debt.

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To learn more about your credit card debt and debt relief through Chapter 7 or Chapter 13 bankruptcy, call our bankruptcy lawyers or contact us online today. We offer free initial consultations, quality services at competitive rates and effective representation statewide.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.