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Ratings. Guidance. The Right Lawyer.
Are there legal restrictions about Chapter 7 and credit card debt?
Portland, OR
Viewed 65 times.
Posted 4 months ago in Bankruptcy / Debt
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My husband heard a radio program last night in which the guest was claiming that credit card debt could no longer be eliminated through bankruptcy. Is this true?
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Answers (2)
Malissa Linn Walden
This attorney is licensed in Kansas.
Posted 4 months ago.
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Chapter 7
Dischargeable •Personal Loans •Credit cards •Repossession deficiencies •Auto accident claims •Jdgments •Business debts •Leases •Guaranties •Negligence claims Possibly Dischargeable •Property settlements or division of debts in divorce •Willful and malicious injuries to others •Embezzlement •Debts incurred by fraud or dishonesty •Debts arising from breach of fiduciary duty In order for these debts NOT to be discharged, creditors must ask the court to make a determination about them. Without a request from the creditor and a granting of that request by the court, these types of debts will be discharged. Not Dischargeable •Recent taxes •Trust fund taxes •Child or family support •Criminal fine or restitution •Auto accident claims involving intoxication •Debts not scheduled •Penalties payable to the government other than tax penalties •Student loans •Debts listed in prior bankruptcy where debtor was denied a discharge In general, the there are two types of debt that can be discharged -- secured and unsecured. Secured would include items like your mortgage or car loan. Unsecured debt is debt that is not tied to any specific property. The most common kind of unsecured debt is credit card debt. Credit card debt is usually discharged in bankruptcy. However, Credit card companies sometimes challenge the discharge in bankruptcy of debt owed to them, by claiming that the debt was fraudulently charged by: •Submitting a fraudulent application •Using the card without any intent to repay the debt If you have run up your credit cards in the 2-3 months prior to filing for bankruptcy, it is likely you will have to pay those debts in full. It depends on the specifics of each case as can only be addressed by a practiced attorney. 
Ryan P Hackett
This attorney is licensed in Oregon and 1 other state.
Posted 4 months ago.
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That is absolutely not true. Credit card debt is one of the most common forms of debt that is discharged in banrkuptcy. There is a lot of bad information about bankruptcy out there. If you are considering bankruptcy you should meet with a reputable local bankruptcy attorney. Many offer no cost consultations and can explain in detail what your options are and whether there are any potential problems to discharging your specific debts.
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