Friday, July 25, 2014

What Happens To Credit Cards In Bankruptcy?

Credit card debt is one of the most common debts Americans have, and most of our clients want to know what will happen to their credit cards in bankruptcy. Most importantly, credit card debt can be discharged in bankruptcy.  Credit card debt is an unsecured debt and unsecured debt has the lowest priority in a personal bankruptcy. Credit card debt is almost always dischargeable in bankruptcy.

It is important to know you can’t leave any credit cards out of your bankruptcy. Bankruptcy is an all in process: all debts need to be listed on your petition.  If you've been using your credit cards close to the time when you file for bankruptcy it may be difficult to discharge that debt, especially if you made a luxury purchase. Tell your bankruptcy lawyer about your recent credit card usage.  Your lawyer can formulate strategies for filing your bankruptcy and getting all of your debts discharged.

Filing for bankruptcy in Georgia will give you federal protection against creditor harassment, wage garnishments, foreclosure, and repossession. If you file a Chapter 13 bankruptcy, credit card companies are also required to accept the terms of your new repayment plan (most cases filed pay 0% to their unsecured creditors).  If you’re ready for a fresh start, call King and King Attorneys in Atlanta today at 404-524-6400 or visit us at for more information.