| Credit card debts are typically unsecured debts. Unsecured debts are generally 100% dischargeable in a chapter 7 bankruptcy filing. There are some exceptions to the rule, like credit card debts incurred within 90 days or filing for bankruptcy or credit card debts secured by false pretenses or fraud. Credit card debts are the most common debt discharged in a chapter 7 bankruptcy filing. Some credit cards are secured debts in that the property you buy using the credit card is collateral for repayment. If you don’t pay the debt or have it discharged in bankruptcy, the creditor has a right to take the property back. In most cases, it costs more in legal fees to try to recover the property, so even if the creditor has a right to recover the property, he may choose not to and you can keep it. If you wish to keep the property without the risk of losing it to the creditor, you would have to reaffirm the debt. Reaffirming the debt simply means that you agree to legally honor the debt and not have it discharged in bankruptcy. Your bankruptcy lawyer can review all of your credit cards and explain how the chapter 7 bankruptcy will affect each credit card debt that you have. |
