If you’re overwhelmed with credit card bills, you’re not alone — and you’re probably wondering if bankruptcy could finally give you a fresh start. The short answer? Yes, bankruptcy can eliminate credit card debt, but it depends on the type of bankruptcy you file and your unique financial situation.
Here’s what you need to know.
💳 Credit Card Debt Is Usually Unsecured Debt
Credit card debt is considered unsecured, meaning it’s not tied to any property like your house or car. This makes it one of the easiest types of debt to discharge (wipe out) in bankruptcy.
📂 Chapter 7: Full Discharge of Credit Card Debt
If you qualify for Chapter 7 bankruptcy, most (or all) of your credit card debt will likely be completely discharged — no repayment required.
- This process typically takes 3–6 months
- You must pass a means test to qualify
- You may have to give up some non-exempt property (though many people lose nothing)
Once your case is discharged, your credit card balances are gone.
📅 Chapter 13: A Repayment Plan for 3–5 Years
If you don’t qualify for Chapter 7, Chapter 13 allows you to create a manageable repayment plan.You’ll make monthly payments based on your income and budget
Some or all of your credit card debt may still be discharged at the end
Creditors can’t charge interest or fees once the case begins
This option is great if you’re behind on mortgage or car payments and want to keep your property.You’ll make monthly payments based on your income and budget
Some or all of your credit card debt may still be discharged at the end
Creditors can’t charge interest or fees once the case begins
This option is great if you’re behind on mortgage or car payments and want to keep your property.
- You’ll make monthly payments based on your income and budget
- Some or all of your credit card debt may still be discharged at the end
- Creditors can’t charge interest or fees once the case begins
This option is great if you’re behind on mortgage or car payments and want to keep your property.
❗What Credit Card Debt Can’t Be Wiped Out
While most credit card balances are dischargeable, there are exceptions:
- Recent luxury purchases or cash advances (usually made within 90 days of filing)
- Fraudulent charges (e.g., using cards knowing you can’t repay them)
These can be challenged by the creditor and may not be forgiven.
✅ Should You Keep Paying Your Cards Before Filing?
Talk to a bankruptcy attorney before making payments. In some cases, you may not need to keep paying, and continuing to do so could hurt your case or waste money.
⚖️ Final Thoughts
Credit card debt is one of the main reasons people file for bankruptcy, and in many cases, it can be completely eliminated. If you’re struggling to keep up, there’s no shame in asking for help.
Our office can review your situation and help you decide which option makes the most sense — and whether bankruptcy is the right move for you.
📞 Contact us today for a free consultation. We’re here to help you get the fresh start you deserve.