QUESTION
Are closed credit cards with remaining balances unsecured debts?
Asked on Apr 25th, 2013 on Bankruptcy - California
More details to this question:
I have credit cards that are closed and on payment plan. Would those cards be part of the unsecured debts that would get discharged? I know that credit cards are unsecured debts that would get discharged but I am not clear on closed credit cards with remaining balances.
18 ANSWERS
Commercial Attorney serving Columbia, SC
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Gleissner Law Firm, LLC
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Generally, credit cards are unsecured debts, even those that have been "closed and on a payment plan." The payment plan administrator and the credit card company should be included in the bankruptcy schedules and should be discharged in the bankruptcy.
Answered on Apr 26th, 2013 at 12:47 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Yes, those credit card debts would be discharged in a chapter 7 bankruptcy.
Answered on Apr 26th, 2013 at 12:10 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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A claim is a claim is a claim. Yes, it is discharged.
Answered on Apr 25th, 2013 at 10:09 PM
Yes, all credit card debts are unsecured debts, unless you put down money or other collateral to get the card. And, yes, they would be discharged in bankruptcy, regardless of whether the accounts are closed or not. If there is a balance, it will be discharged in bankruptcy.
Answered on Apr 25th, 2013 at 9:32 PM
Personal Injury Attorney serving Reno, NV
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Law Offices of William D. Cope, LLP
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Yes they are dischargeable unsecured debts. Should you desire to discuss this matter further.
Answered on Apr 25th, 2013 at 9:13 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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They are discharged.
Answered on Apr 25th, 2013 at 9:08 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Just because a creditor has closed an account does not change the character of the debt. If the debt was secured then it is still secured.
Answered on Apr 25th, 2013 at 11:50 AM
It sounds like you are worrying about things that are completely unimportant, which almost always means that you are ignoring things that are important. Do not file bankruptcy without legal representation, because it is the problem that you don't see that will bite you.
Answered on Apr 25th, 2013 at 11:50 AM
2 Awards
Yes, if you owe the debt then it must be listed on the bankruptcy.
Answered on Apr 25th, 2013 at 11:49 AM
Bankruptcy Chapter 7 Attorney serving Louisville, KY
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Thornhill & Holt, PLLC
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Yes they are.
Answered on Apr 25th, 2013 at 11:47 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Open and closed credit card debts are discharged.
Answered on Apr 25th, 2013 at 11:45 AM
Deborah F. Bowinski
Yes, all credit cards with balances are listed as unsecured debts in your bankruptcy schedules. Assuming there are no objections, the balances will be discharged along with the rest if your dischargeable debts.
Answered on Apr 25th, 2013 at 11:44 AM
Divorce & Separation Attorney serving St. George, UT
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RBW Esquire, LLC / Weekes Law
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Credit card debt is generally unsecured debt. Unsecured debt simply means that no lien (security) was taken against property to ensure payment. Thus, it does not matter whether the account is open, closed or any other status. Unsecured debt once incurred will remain unsecured.
Answered on Apr 25th, 2013 at 11:43 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Yes.
Answered on Apr 25th, 2013 at 11:43 AM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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Probably, but some credit cards are secured and the items bought with them can be repossessed after being sued.
Answered on Apr 25th, 2013 at 11:42 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Generally, unless there are special provisions, credit card debt, whether there are current charge privileges or not, are unsecured debts and dischargeable in bankruptcy.
Answered on Apr 25th, 2013 at 11:41 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
2 Awards
Yes, credit cards with unpaid balances, provided they are not secured by an item (such as a computer, television, etc.) would be deemed unsecured and dischargeable.
Answered on Apr 25th, 2013 at 11:41 AM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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Yes, they are unsecured debts, should be listed on Schedule F and should be discharged with other unsecured debts.
Answered on Apr 25th, 2013 at 11:39 AM