How Credit Card Debt is Eliminated by Chapter 7

If you find yourself overwhelmed by debts, with no ability to repay them, you may want to consider filing Chapter 7 bankruptcy.  A Chapter 7 discharge allows you to eliminate your debts, which may consist of unsecured debt such as credit cards.  Since there is no property securing these types of debts, a Chapter 7 discharge can leave you with no debt, other than those that are not dischargeable under bankruptcy law.

Discharging Unsecured Debt

A Chapter 7 bankruptcy allows you to discharge, or completely eliminate your debts.  People who seek Chapter 7 bankruptcy relief often have a great deal of unsecured debt, such as credit card debts and medical bills.  Unsecured debt is not secured by any form of collateral or asset, such as real estate, vehicle, or other item of property. 

Bankruptcy Eliminates Credit Card Debt

As a result, Chapter 7 bankruptcy may be the best way to deal with your debts, particularly if you are facing a large amount of credit card debt that you are unable to repay.  Since a Chapter 7 bankruptcy discharge eliminates credit card debt, you are free to start over without the burden of your prior debts.

Using Credit Cards Before Bankruptcy

Not all Chapter 7 bankruptcy proceedings are successful.  For instance, if you are excessively using your credit cards before bankruptcy, with no intention of ever paying them due to Chapter 7 bankruptcy discharge, you may run into difficulties with the bankruptcy court.  Intentional wrongdoing by using your credit cards before bankruptcy creates a red flag for the bankruptcy court that may ultimately result in the denial of a Chapter 7 discharge of your debts.

Contacting a Bankruptcy Attorney for Help

If you are facing Chapter 7 bankruptcy in order to deal with your unsecured debt, you should immediately enlist the help of a seasoned bankruptcy attorney.  By assisting you in meeting all of the strict requirements for a Chapter 7 discharge, a bankruptcy attorney can ensure that bankruptcy eliminates credit card debt and unsecured debt that you are unable to pay.