Steps to Discharge Credit Card Debt in Bankruptcy
If you have been considering a personal bankruptcy filing, whether under Chapter 7 or Chapter 13, you may be among the record-setting and growing number of Americans who are “unable to pay off their monthly credit card bills,” according to a recent report from CBS News and MoneyWatch. Indeed, data suggests that about 50 percent of Americans are now carrying credit card debt, which totals to about 111 million people, or 40 percent of the total adult population in the country. That number represents a significant increase from even five years ago, when only about 95 million Americans were carrying credit card debt — a 17 percent increase.
Gas prices are rising quickly, and other prices are rising, too. If you want to have your credit card discharged in a bankruptcy filing, what steps do you need to take? Consider the following information from our South Florida bankruptcy lawyers.
Determine Your Eligibility for Bankruptcy
Do you know if you want to file for Chapter 7 or Chapter 13 bankruptcy? Chapter 7 is a type of liquidation bankruptcy that requires the liquidation of non-exempt assets, whereas Chapter 13 is a type of reorganization bankruptcy through which the debtor restructures debt over a three-to-five-year payment plan. Chapter 13 eligibility is not usually an issue, but you will need to pass the “means test” if you want to be able to file for Chapter 7 bankruptcy.
Find Out if Your Credit Card Debt is Dischargeable
Generally speaking, credit card debt is dischargeable in bankruptcy. However, certain charges that were filed within the period shortly before you file for bankruptcy could be considered “luxury” charges and may not be dischargeable.
If you made a charge of $900 or more to a single creditor in the 90-day period prior to filing for bankruptcy, this could be considered a luxury charge and may not be dischargeable. Cash advances of more than $1,250 in the 70-day period prior to your filing are treated similarly. However, even if you have made such charges, you may be able to prove that they are an exception because they were necessary charges for family or individual needs.
Seek Advice from a Bankruptcy Lawyer
Get in touch with a bankruptcy lawyer who can assist you through every stage of the bankruptcy process in Florida.
Contact Our West Palm Beach Bankruptcy Attorneys for Assistance Filing a Bankruptcy Case to Discharge Your Credit Card Debt
Are you struggling with credit card debt? As we discussed above, you are among the “record share” of Americans who are currently finding it impossible to pay their credit card bills due to increased costs and inflation coupled with stagnant wages and job growth. More and more people are charging necessities on credit cards and feeling overwhelmed by the amount of debt they owe. For most debtors with credit card debt, it will be possible to have that debt discharged in a personal bankruptcy case. To find out more about a personal Chapter 7 bankruptcy or Chapter 13 bankruptcy to obtain relief from your credit card debt, you should get in touch with an experienced West Palm Beach bankruptcy lawyer at Kelley Kaplan Delaney & Eller, PLLC. Contact our firm today to learn more about how we help clients with bankruptcies in South Florida.
Sources:
cbsnews.com/news/record-share-americans-cant-pay-credit-card-bills/
law.cornell.edu/uscode/text/11
