Credit Card Bankruptcy

One of the big reasons people end up filing for bankruptcy, is because of their credit card. There isn't necessarily a form of bankruptcy termed Credit Card Bankruptcy, but there is something called chapter 7 bankruptcy, which works by eliminating credit card debts, and that is why a lot of people refer to it as credit card bankruptcy.

Credit card bankruptcy is very common because it is so easy to get into debt by using your credit card. This is usually not a problem, because people will have ways of paying the money back. Some people, however, cannot pay this back and so bankruptcy will have to be declared.

If you feel that you need to declare credit card bankruptcy, the best thing for you to do is do not use your credit card 6 months before you declare bankruptcy. The less you use your credit cards, the more it will validate your claims that you are having financial problems.

 In instances where credit card bankruptcy will have to be declared, credit card issuing agencies sometimes can dispute your bankruptcy claim. This happens sometimes because they might believe that you obtained the credit card through fraudulent means. If this happens, credit card companies can sometimes refuse to discharge your claim for bankruptcy.

 If a credit card company challenges your claim, it then is termed a 'non dischargability action', and the issuers will say that you obtained your credit card through fraudulent means, without intent to pay back any debts that you owe.

If you used your credit card a lot, right before filing for bankruptcy, then your credit card bankruptcy claim might be challenged, this is why I mentioned you should not use your card 6 months before filing.  

Learn more about how you can get a credit card after bankruptcy