Can you include credit card debt in a bankruptcy?
Aug 01, 2009 in
Credit
beehappy01
I have a friend in FL that is filing bankruptcy. I thought they passes a law a few years ago that stated you could not include credit card debt in bk. Is that true? They are telling me that you can include credit card debt.
I have a friend in FL that is filing bankruptcy. I thought they passes a law a few years ago that stated you could not include credit card debt in bk. Is that true? They are telling me that you can include credit card debt.
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6 comments
calibombshell on August 3, 2009 at 2:19 pm
You can. It is a debt.
mibanker on August 5, 2009 at 12:32 am
Yes you can… but because the BK laws have changed, it will probably start at a Chapter 13 instead of a 7. In a 13, the debt might be reduced, but have to be paid back. All consumer debt can be included in any BK.
chris v on August 6, 2009 at 9:07 am
If they are in the Uk then yes cards can be included I know this as just helped my ex through the process, USA I wouldn’t be sure but they are seen here like all debt that is not linked to property or assured by another,
spifiman1 on August 8, 2009 at 3:22 pm
All consumer debts can be included in a bankruptcy. It’s just a lot harder to file chapter 7 now.
First you have to go through 6-months of credit counseling and then take whats called a means test to determine weather you file chapter 13 or 7.
If you make over the average annual income for your State, you are forced into a chapter 13.
OC1999 on August 8, 2009 at 5:34 pm
You not only can she but she MUST declare all of the debts in the bankrutcy. Knowingly leaving a debt off of her bankruptcy might cause it to be dismissed if they found out and they feel it was done to show preference to that creditor.
Now depending on her situation she may not be allowed a Chapter 7 but be moved into a Chapter 13 bankrutpcy. In a Chapter 13 they set up a payment plan to settle the debts.
When she talks to a lawyer they will walk her through the means test to determine which Bankruptcy chapter she can file for.
YSIC on August 9, 2009 at 11:45 pm
Yes, you can include CC debt. About the only things you cannot include are child support and student loans. (and any other money you might owe the government).