Credit Card Debt?

Credit card debt is considered unsecured, low-priority debt and can be fully discharged in a Chapter 7 bankruptcy. To qualify for Chapter 7, your income must be below the state's median or you must pass the "means test."

Once you file for bankruptcy, an automatic stay on collection actions is put into effect. This means credit card companies and collection agencies must cease all efforts to collect your debts.

For higher income earners, Chapter 13 bankruptcy involves working with an attorney to create a repayment plan, which will include payments toward credit card debt. One key benefit of Chapter 13 is that it halts the accumulation of interest, which is often a major factor in deepening debt.

A Lawyer Can Help You Wipe Away Your Florida Credit Card Debit

If your lawyer decides you qualify for Chapter 7 bankruptcy, you can file and usually expect your credit card debt to be wiped out, unless you made big charges right before filing. If you don't qualify for Chapter 7, it might be a good idea to file under Chapter 13 instead. This could happen if your income is too high for Chapter 7. In Chapter 13, you'll pay back what you can afford based on your income, and the rest of your credit card debt will be forgiven.

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In Florida, there is a 90-day lookback period for "luxury" purchases, which are items not necessary for basic household needs. If you made any large purchases during this time, they may not be included in your bankruptcy, so it's best to avoid unnecessary spending before filing. If you charge a lot on your credit cards right before filing for bankruptcy or make large charges without making payments, the credit card companies may object to discharging that debt, meaning you might not be able to include it in your bankruptcy. To avoid this, it’s important to limit using your credit cards once you know you're going to file, as it helps prevent complications in your case.

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