If you are like many struggling borrowers then your primary goal is to eliminate your credit card debt through traditional means of debt relief, and while there are a number of debt relief options that can address accumulated credit card debt, there are some circumstances that require more severe action. Perhaps your debt has accumulated to a point where “normal” corrective procedures cannot address your concerns, or maybe you’ve tried settling your debt through a debt settlement attorney with mixed results. After other options for debt relief have been exhausted, people often wonder whether or not they can claim bankruptcy on credit cards and credit card debt. Unfortunately, the answer to this question isn’t so cut and dry. To learn more about bankruptcy and credit cards, read on.
I’m not here to tell you that claiming bankruptcy on credit cards is impossible, though there are some roadblocks that you might encounter along the way. Creditors are savvy to the fact that dishonest borrowers will often rack up large amounts of credit card debt with no intent to repay, which is why claiming bankruptcy on credit card debt can be difficult. Attempts to discharge credit card debt in bankruptcy are often challenged by the bankruptcy court, particularly when the following criteria are met –
• There was an increase in credit card usage prior to filing the bankruptcy claim
• The card was newly issued
• There were substantial cash advances on the card in the months leading up to filing
• The card was used for recent travel or vacation expenses
• The card was used to pay off a separate credit card
• The card carried a large balance at the time of filing
The bankruptcy process was set up to help honest individuals address their debt issues and there are strict regulations in place to prevent fraud. If you want to take advantage of filing a claim on your credit card debt, but don’t want to trigger a challenge by the bankruptcy court then your best bet is to extend the amount of time between use of your cards and the actual claim date.
For more information on credit card bankruptcy, claiming bankruptcy on student loans and for specific tips on how to claim bankruptcy responsibly, please feel free to browse our comprehensive site.
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