Can I File Bankruptcy on Credit Card Debt Only?

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Yes, a debtor can file bankruptcy for credit card debt and nothing else. When debt becomes so overwhelming that you cannot pay your bills, bankruptcy is a very valid option. Which chapter to file under depends largely on your income, not debt.

Filing Under Chapter 7 to Eliminate Credit Cards

If you're a potential petitioner with very few assets and an income below the median then filing a chapter 7 makes the most sense. The reason being is that the guidelines for this bankruptcy require liquidation of any assets with value. If there are no assets to liquidate, and everything that you own is able to be exempted, then you can walk away from your debt and keep your important items. Even in the situation where you own a car or a home, you do not necessarily have to give them up. Selling your house makes absolutely no sense. The trustee is not in the business of putting you on the street. A primary residence will be left alone for the petitioner to reaffirm the mortgage with the bank. A similar reasoning goes behind a vehicle. A car allows a debtor to work and maintain a standard of living. Again, it is not in the trustee's interests to make your life miserable.

It will take about 4 months from filing to complete a bankruptcy. Included in the time line is the 341 meeting, post-bankruptcy counseling, discharge, then case closure. After discharge you can no longer be held responsible for your debts. It will take a while to rebuild your credit, but take the lessons learned from bankruptcy to heart.

Legal Assistance

At the very least, consult a lawyer before starting bankruptcy. It is a complicated process that can go wrong quickly if things aren't completed correctly. Having a lawyer means that there's someone who can answer your questions and help you move through the process with the least stress possible.

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