Credit Cards

Using a credit card assures a seller that the cardholder has a satisfactory credit rating, and that the issuer will see to it that the seller receives payment for the merchandise delivered or services rendered. However, excesive use of credit cards may lead the cardholder to accumulate an unpayable debt.

If you are planning to file for bankruptcy to relief your credit card debt, you can do it under Chapter 7 or Chapter 13 of the bankruptcy code, where the debts are most always considered unsecured. You should stop using your credit cards immediately and not incur any additional debt once you have determined that you are going to file for bankruptcy relief. In almost every bankruptcy situation, your credit cards will be canceled by the issuer upon notice of the filing, even if you have a zero balance. Whether you can keep the credit card or not is at the sole discretion of the credit card company.

Although credit card debts are most always dischargeable under a Chapter 7 (or may be significantly reduced in a Chapter 13) there are certain circumstances where credit card debt may be deemed entirely nondischargeable. For example, credit card used to pay for student loans, taxes, child support, or issues of fraud.

Take into account that when filling for bankruptcy, should a credit card issuer challenge the dischargeability of their debt in the Chapter 7 Bankruptcy; they may file an adversary proceeding which is a type of lawsuit within the Bankruptcy Court. An adversary proceeding or “non-dischargeability” action would likely claim that the debt was incurred by fraud and therefore should be excluded from Discharge in Bankruptcy.

If you need an immediate debts relief filing bankruptcy, contact lawyer Jorge L. Gonzalez, and he will be able to help you determining which is the best procedure to do that.


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