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Bankruptcy for CC debt

E14580
New Member

Bankruptcy for CC debt

I am currently around 30k in debt between two credit cards. While I can still make my minimum monthly payments, I can’t afford to pay much more on them monthly and am living paycheck to paycheck in general. More importantly I cannot afford to save any money or to take on any new expense related to my home or car (repairs). I finally am feeling like I’ve dug a hole I can not get out of. I am considering filing for chapter 7 bankruptcy to hopefully erase these debts but was wondering if anyone has been denied a bankruptcy discharge? Despite this enormous debt I really have nothing to show for it as far as assets go. it’s been an accumulation of groceries, clothes, activities for my child, emergency travel expenses etc. No luxury or large items. I have a home that I have a mortgage on and also a car that I owe around 12k on (not worth that much) that I would like to keep. Has anyone had a similar situation that is willing to share their experience? My debt I am looking to discharge are solely credit card debts. Will a court review years of my statements? Also the largest of the two accounts i owe is 24k with Bank of America. Can they fight the discharge?
3 REPLIES 3
a51
Established Member

Re: Bankruptcy for CC debt

It would be best to consult with an attorney

Rebuild commenced 6/2018
FICO 8s:
6/2018 TU575 EX550 EQ535
6/2020 TU647 EX636 EQ650
Credit Cards 5 Store Cards 6 Installments 3
Message 2 of 4
lpavelchak0204
Regular Contributor

Re: Bankruptcy for CC debt

Sure its always best to ask an attorney but I think OP is trying to collect data points based on other peoples experiences.

 

I was at my cousin's side when he filed BK on a massive amount of cc debt, a consolidation loan, and two small medical collection. He had a massive amount of CC's he had been "robbing Peter to pay Paul" for years with BT offers and it all caught up with him after a short lay off and two rather minor trips to the ER.

 

4 months prior to his BK decision he had tried to consolidate his cc debt in a loan but I think he waited too long. That said, it did keep him in the good graces of several cc companies which aided in his swift rebuild process.

 

There were no creditors fighting him and no bumps in his BK. He stayed in his home and kept his paid off car. He didn't have to supply years worth of cc statements etc. I believe it was 3 month on the CC charges and there was one question about a waterheater purchase just prior to filing at HD but it was deemed an essential and not frivilous. 

 

I on the other hand didn't file BK I walked away from my debt and now regret having done that because my rebuild has taken forever.

Nov 2019 EX 780, TU 760 EQ 752, June 2019 EX 778, TU 788, EQ 790 April 2019 FICO EX 802, TU 790, EQ 804, Oct 2018 Fico'd EX 817, TU 811, EQ 798
June 2018 Fico's EX 830, TU 817, EQ 824
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Rebuilder Cards: First Permier $1250 closed (6/11/18), FNBO $2600( Nov 2006)

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Message 3 of 4
a51
Established Member

Re: Bankruptcy for CC debt

Unfortunately you can't only discharge credit card debt and not other debt. Make sure you meet income requirements to file Chapter 7

If you decide to file make sure not to pay any creditors/or even make payments to friends, use the atm or make cash advances etc or use the credit cards at least 90 days prior. Car/House exemptions are dependant on State Law as well as many other exemptions.

As for them fighting the discharge they only would if there was a jusifiable reason for them to file an adversary proceeding

 

Rebuild commenced 6/2018
FICO 8s:
6/2018 TU575 EX550 EQ535
6/2020 TU647 EX636 EQ650
Credit Cards 5 Store Cards 6 Installments 3
Message 4 of 4
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