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Can you eliminate only your credit card debt in bankruptcy?

On Behalf of | Mar 27, 2019 | bankruptcy |

People often have debts that they want to eliminate, and one question they may have is if they can only file bankruptcy for certain debts, like their credit cards. Normally, credit card debt can be discharged with bankruptcy, but you can’t file only on one kind of debt.

Legally, you’re required to report all the debts you have during bankruptcy. The court is then in charge of deciding which debts you can or cannot discharge.

What do you do when you file for bankruptcy?

When you file for bankruptcy, you’ll make a list of all the debts you owe to your creditors. There are some debts that can be dismissed and others that cannot. In most cases, your credit card debts can be discharged, but there could be exceptions that you’ll find out about when you report the debts you owe.

One exception to be aware of is if you’ve continued to use your credit cards despite knowing that you were going to seek bankruptcy. The creditors then can file a complaint of nondischargeability. If the judge reviews the facts and agrees that you purchased more on your credit card despite knowing that you planned to discharge the debts through bankruptcy, they may not allow the debts to be discharged. Using credit cards with the intention of declaring bankruptcy in the near future is a type of fraud, which can result in other penalties.

Your attorney can help you learn more about bankruptcy and which of your debts may be discharged so that you have a better idea of what to expect.