Bankruptcy Filing Credit Card

Credit card show to arrive each day in the mail.A sweet deals to offer. If you will sign up for a credit card and use it for your purchase go to a retailer and they will give you a 10% discount.A large amounts of credit card debt is no wonder that a lot of people have. To be so large and difficult to pay that they begin to think of filing credit card bankruptcy for some people the amount gets.Does it sound so simple?

First, No such thing as credit card bankruptcy. There are two types of personal bankruptcy – Chapter 7 bankruptcy and Chapter 13 bankruptcy.Like credit cards, mortgage, medical bills, and car loans, whenever you file for either of these types of bankruptcy, you must list all of your debts. You want to list and you cannot simply select which debts.By federal law, you must list all of your debts.Next, credit cards that consumers use has two types.Primarily types of cars the master card(tm) and visa(tm).s. The second type are the store credit cards which are designed to be used only in a specific company’s stores.A good example of this is a Sears credit card.

Unsecured and secured are also two types of debt. Most of the time when the multi-purpose, multi-location type of credit cards and store credit cards are used, they create unsecured debt.The credit card loan with which you make the purchase this means that you did not put anything up as collateral. However, with some store credit cards, when you purchase durable goods, such as appliances, jewelry, etc., the store will retain a security interest in the items that you purchased. The store can seek repossession of the items that you purchased this means that if you do not pay the credit card debt for the item.Multi-location type of credit cards and is unsecured debt, then filing bankruptcy under Chapter 7 may be your best bet because it will discharge unsecured debt if your credit card debt is primarily from the multi-purpose.Because you could lose property in a Chapter 7 of course you must consider all factors.

The store retains a security interest in the items purchased, you can try filing bankruptcy under Chapter 13,if your credit card debt is primarily from the store type of credit card where. Depending on a number of factors, you may be able to pay for the value of the items instead of the original price of the items.It is important to remember that when you file bankruptcy, you file against all of your creditors, not just against credit cards.Take note that personal bankruptcy has disadvantages such as possibly losing property and long term negative affects on your credit.Filing bankruptcy should not be taken lightly. Consider all factors and not just your credit card debt.

A general information. Talk to a licensed lawyer if you need specific information or have any questions of any nature whatsoever.

Wish to know the important points regarding credit card comparison ? If sure visit credit card comparison .

Related Blogs

Leave a Reply