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Discharge Credit Card Debt With Bankruptcy

It is widely known that a chapter 7 bankruptcy can eliminate or discharge credit card debt if all of the bankruptcy requirements under the bankruptcy code are fulfilled, but what actually happens to all of your credit card accounts after you file for bankruptcy? Here’s some information on what happens with your credit card accounts. When you file for bankruptcy, all credit cards that are included in the petition will be notified of the bankruptcy. These credit cards can close your account or remove your credit line, but not all credit card companies or banks will immediately shut down your account. It depends on their processes in dealing with bankruptcy clients. We have seen some companies leave the credit lines open.

So, what happens if you include some cards and you forget to include a few others or a card was missed in your petition? If a card is not included in a bankruptcy petition, the bank may still find out about the bankruptcy and then take action from there. Some banks have processes that regularly check their clients’ record for bankruptcy. If the credit card was left off the petition, they may still find out about the bankruptcy through their own checks. In this case, they also may close your credit line, but not all of them do that. It is very difficult to predict whether the credit line will be closed or not. It just all depends on how the credit card company or bank operates.

To learn more about what bankruptcy can do about your credit card debt, contact Bankruptcy Law Pros at (855) 257-7671.

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