Credit Cards 

In most cases, when you file bankruptcy San Diego, your credit cards and associated debt that you owe will be eliminated.  Lower income earners, who will usually qualify for straight bankruptcy under Chapter 7, can eliminate all of their credit card debt in bankruptcy.  Higher income earners, who generally will not qualify for straight bankruptcy, will have to file a repayment bankruptcy and repay part, or in some cases all, of their credit card debt in bankruptcy in San Diego.

Lawyer Can Help You File Bankruptcy on Credit Cards San Diego

If your lawyer determines that you qualify for bankruptcy under Chapter 7, you can file a credit card bankruptcy and can generally expect your credit cards and associated debt to be eliminated, absent any fraud or other wrongdoing, such as making charges on your card before you file bankruptcy. If your lawyer determines that you need to file under Chapter 13, usually due to higher income levels, then you will have to repay as much of your credit card debt as you can afford to pay based upon your available disposable income. 

Unsecured Debt Repayment

In your bankruptcy, credit cards and associated debt is referred to as "unsecured debt."   Your bankruptcy attorney will perform a bankruptcy disposable income test to determine how much, if any, of your unsecured debt you must repay in a Chapter 13 case.  A similar test is applied in Chapter 11 and Chapter 12 cases when you file bankruptcy on credit cards. 

Recent Charges on Credit Cards

When you signed your credit card agreement, you promised to repay charges that you make. If you make charges on your credit cards at a time that you already know you will be filing bankruptcy, then that can evidence absence of a good faith intention to repay the charges that you made. That lack of a good faith intent to repay the charges is a grounds for denying you a discharge of the charges that you made on your credit cards.

If you have incurred credit card debt immediately before filing bankruptcy, or if you have incurred large charges on your credit cards and then didn't make any payments whatsoever on your credit card, then your credit card lender may object to you receiving a discharge and you will not be able to file bankruptcy on your credit card debt.  

If you cannot file bankruptcy on your credit card debt, then you will not be able to get out of debt San Diego and you will be denied credit card debt relief.

If you have made recent charges on your credit cards, or made large charges and then didn't make any payments, you should discuss this in detail with an experienced San Diego bankruptcy attorney, to determine whether the credit card debt will be eliminated in bankruptcy.