Wipe Out Debt

Important Facts About Eliminating Credit Card Debt

IMPORTANT FACTS ABOUT ELIMINATING CREDIT CARD DEBT-BryanKeenan
Edited by Bryan Keenan

In a recent interview, I discussed how to use Chapter 7 as an effective strategy when it comes to wiping out credit card debt.

A significant portion of my incoming clientele is unaware of certain things about getting rid of credit card debt before declaring bankruptcy. These are three things that people need to know before filing.

The first and most important thing to know is that credit card debt is dischargeable after filing for bankruptcy. Chapter 7 is the most common type of bankruptcy filed when most of the debt has been accrued by credit cards.

All unsecured debt – which includes credit cards, personal loans and medical bills – will be wiped clear after filing. This means that you no longer have any obligations on outstanding balances. This comes as a huge relief to people who have been constantly hassled by debt collectors.

Credit card companies who continue to pursue collecting on past-due payments after filing for bankruptcy are violating the law and can be taken to bankruptcy court.

Another vital piece of information is that people looking to declare bankruptcy should not use their credit cards after meeting with a bankruptcy attorney.

Although the rule of thumb is to eliminate credit card debt, fraudulent activity will hamper the bankruptcy process. Fraudulent activity in this case means you used your credit card without the intention of paying the money back.

Many people who file for bankruptcy are able to get credit cards again.

After declaring bankruptcy and wiping your debt slate clean, you’ll have a better debt to income ratio, which will make you more appealing to credit card companies. Many of my clients have received credit card offers in the mail after filing.

I further added regulations that state people must wait eight years before declaring bankruptcy again provide guarantees to lenders and increase chances of qualifying for a credit card.

Responsibly using a credit card for necessities such as filling the tank or paying bills is a great way to rebuild credit after filing for bankruptcy.

If you have any questions just fill in the form below and I’ll be happy to help 🙂


About the author

Bryan Keenan

Attorney Keenan is a familiar face with the Bankruptcy Court Judges, trustees and practitioners in the state of Pennsylvania, and has handled thousands of consumer bankruptcy files. Attorney Keenan takes pride in keeping up with the constant changes to the local and national bankruptcy rules." Prior to becoming a lawyer he worked as a paralegal for ten years, and, therefore, he has worked in this field for the past 22 years.

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