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Will A Chapter 7 Bankruptcy Clear My Credit Card Debt

If you’re swamped with unsecured debt in the form of credit cards, your first priority in bankruptcy may be to discharge that – and stop the harassing calls from your creditors.

In Chapter 7 bankruptcy, you can discharge unsecured debt, as long as those debts meet certain criteria, such as:

  • No purchase of luxury goods within 90 days of filing. If you purchase more than $650 from a given vendor for luxury goods or services within the 90 day window, the court may exclude that debt from discharge. This discourages debtors who know they will be filing from going on a buying spree.
  • Some cash advances may not be discharged. If you withdraw more than $925 in cash advances within 70 days of filing for bankruptcy, the court may not allow those cash advances to be discharged.
  • Use of credit cards that the court finds to be fraudulent – which may include making large purchases when you knew you couldn’t pay the money back – may not be discharged in Chapter 7.

Call the bankruptcy attorneys at Zelenitz, Shapiro & D’Agostino at 718-599-1111 to learn how we can help you discharge your credit card debt and start fresh after a bankruptcy.