QUESTION
What happens if I have too much credit card debt?
Asked on Jun 04th, 2012 on Bankruptcy - California
More details to this question:
I want to know what the consequences of filing bankruptcy on credit card debt for me future credit options.
14 ANSWERS
Credit can be reestablished quite soon after bankruptcy as you start proving your worthiness again with a steady income and building with small lines of credit or keeping current liabilities, such as a car note or mortgage, in good standing.
Answered on Jun 15th, 2012 at 3:36 PM
Chapter 7 Bankruptcy Attorney serving Appleton, WI
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Sisson & Kachinsky Law Offices
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Many of my clients have large credit card debt and file for chapter 7 bankruptcy to get rid of that debt. Once discharged, many find it easy to get credit after bankruptcy as future Creditors know that you would not be able to file for bankruptcy for another 8 years.
Answered on Jun 14th, 2012 at 2:44 PM
Bankruptcy Attorney serving Washington, DC
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Law Offices of Diann C. Moseley
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If you qualify for bankruptcy, your credit card debts will be discharged which means you have no obligation to pay the debts. When you apply for credit in the future, a potential creditor will know that you have no obligation to pay debts that have been discharged thus your likelihood of obtaining credit is greater than if you do not file bankruptcy and have a large amount of unpaid credit card debt. This is especially true if you have a history of late pays, no pays or charge offs. Remember bankruptcy does not change bad credit to good credit. However, it does allow a potential creditor to evaluate your credit risk based on the fact that your obligation to pay certain debts has been eliminated thus freeing up your income. Further, a potential creditor knows that you have to wait eight years between bankruptcy filings thus the new creditor does not have to be concerned about you filing bankruptcy and wiping out its debt. If you fail to pay the new creditor, the creditor will be able to avail itself of all available debt collection tools, including garnishment and bank levies.
Answered on Jun 13th, 2012 at 3:14 PM
Neither too much credit card debt nor having filed bankruptcy are really good for your future credit prospects. The difference is that, with bankruptcy you can breath and, without it, you are still drowning. Credit eventually recovers and you can live paying cash for awhile. In the short run, having too much credit is what got you into trouble in the first place.
Answered on Jun 13th, 2012 at 3:14 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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You will not have to pay the credit card debt that you now have.
Answered on Jun 13th, 2012 at 12:16 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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I am assuming you have too much credit dard debt and that is the reason you are filing. If you want credit in the future, you will be dealing with lenders who charge higher interest rates and that will not change much for at least 18 months after your complete bankruptcy and obtain a new account . The better your payment record the better rates you will be able to obtain.
Answered on Jun 13th, 2012 at 11:17 AM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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If you file for bankruptcy, that filing will remain on your credit report for up to 10 years - making it very difficult for you to apply for credit.
Answered on Jun 13th, 2012 at 10:10 AM
Daniel James Wilson
Maybe you should discharge your credit card debt in a BK and never get another credit card.
Answered on Jun 13th, 2012 at 9:54 AM
There is no such thing as "too much" credit card debt. In general, credit card debts are unsecured debts. They will be treated the same as all other unsecured debts.
Answered on Jun 13th, 2012 at 9:30 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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It gets forgiven, discharged, wiped off the slate, and you get a fresh start, with a chapter 7. In a chapter 13, you have to come up with a plan to pay a percentage of what you owe over the course of up to 5 years. The credit you obtain after a bkr depends upon the lending practices of the institutions you apply to for credit. You won't be able to file bankruptcy again for about 7 years. So, they should be reasonably assured of getting paid. But it is up to them to give you credit.
Answered on Jun 13th, 2012 at 9:27 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Probably not, unless he was raising the bats or did not act to have tem exterminated if they are living in his property and he was notified and asked to do so.
Answered on Jun 13th, 2012 at 9:23 AM
Barbara A. Fontaine
I do not know exactly what you mean by too much credit card debt. Have you lost a job? If you cannot make even the minimum payments and have no hope of paying down the debt, then you might need bankruptcy. Of course it will adversely affect your future credit options for quite some time; so if you can avoid bankruptcy by paying down the debt or getting the creditors to lower amount or interest rate, do that. Otherwise, you may have to file bankruptcy.
Answered on Jun 13th, 2012 at 9:22 AM
Credit card debt is discharged in Chapter 7. The only future issue would be that if you apply for new credit cards right away, you may be denied due to the recent bankruptcy filing.
Answered on Jun 13th, 2012 at 9:16 AM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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Filing for bankruptcy will eliminate all dischargeable debt, but it will limit your ability to obtain new lines of credit, at least for a while.
Answered on Jun 13th, 2012 at 9:13 AM