Most people receive credit card offers every day in the mail, or so it seems. Many credit card companies offer very tempting incentives and deals to try and get consumers to apply for their cards. Even some retailers will offer customers a discount if they fill out a card application during checkout. That is why it is not surprising when you finally discover that you have an enormous amount of credit card debt. In fact, the amount of debt may be so large that you consider filing credit card bankruptcy. It can be a great way to eliminate your growing credit card debt.
Credit Card Bankruptcy Does Not Exist
The first thing that you should know if you are considering bankruptcy is that credit card bankruptcy does not exist. However, there are two different types of personal bankruptcy you may be able to file. One type is Chapter 7 and the other is Chapter 13. If you do not qualify for Chapter 7, you will have to file Chapter 13. The one common factor between these two is that you will need to list every debt that you have. You do not have the option of only listing your credit card debt. Only the court can make the decision on which debts should be discharged and which ones cannot.
What Types Of Credit Cards Do You Have?
Typically, there are two types of credit cards that people have. One type of credit card is known as a standard credit card or a universal card. Consumers are more familiar with their other names:
- American Express
The other type of credit card is a store credit card or charge card. These cards can only be used at the specific store that issued it. For example, a JC Penney’s credit card can only be used to make purchases from that retailer.
Different Types of Debt
There are also different types of debt. You may have unsecured debt, secured debt, or a combination of both. Universal credit cards and store charge cards are considered unsecured debt. This simply means that you did not give the lender any collateral in order get the credit limit for your card. Those who are filing bankruptcy may try to file Chapter 7 so all of their unsecured debt, including credit cards, will be discharged. However, before you begin the filing process you should hire a bankruptcy attorney.
Debt can be especially troubling and stressful, especially credit card debt. Although you cannot file credit card bankruptcy specifically, your filing must include all of your creditors. Consider your entire financial situation and consult with an experienced bankruptcy attorney before filing bankruptcy.
Do you know that it is possible to get a new financial start by filing for bankruptcy? For more information on bankruptcy and other debt relief options, contact us for a free consultation.