Facts about Filing Bankruptcy on Credit Cards
Filing bankruptcy on credit card bills you cannot pay is a possibility, but you must keep several federally-mandated guidelines in mind before proceeding, warns the book "How to File for Chapter 7 Bankruptcy."
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Warning
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If you lied on your application to get credit cards or used the accounts less for than three months before bankruptcy, you should delay filing a case until you speak to a qualified attorney, according to "How to File for Chapter 7 Bankruptcy." Your bankruptcy could be denied and you could be criminally prosecuted for bankruptcy fraud.
Types
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Chapter 13 bankruptcy will reduce the amount you owe on your credit cards and similar bills, including personal loans and medical debts, notes the book "How to File for Chapter 7 Bankruptcy." A Chapter 7 case, if approved, permanently forgives many of your debts, including credit card bills.
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Timeframe
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A Chapter 13 bankruptcy will negatively affect your credit report for seven years from the date of filing, while Chapter 7 negatively impacts your credit standing for 10 years from the date of filing, according to the credit bureau Experian. It may prove difficult for you to get new credit cards in the years following bankruptcy.
Identification
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United States Code Title 11, federal bankruptcy law, covers all aspects of such cases, including credit cards and basic filing requirements.
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