Credit cards are extremely popular these days and so it is not surprising that a large number of debts is racked up solely on cards alone. However, while it can be a really big problem, there is a lot of doubt as to whether credit card debt can actually be cleared through bankruptcy.
Are you uncertain as to whether your credit card debt could be cleared if you declare yourself bankrupt? If so then read on to find out how bankruptcy affects credit card debts and the things that you really need to know.
Bankruptcy and Credit Cards
Many people do not consider claiming for bankruptcy because of credit card debts due to the fact that the debt is often only a small amount. However, of the individuals who owe thousands on their cards, bankruptcy may seem like the only way out.
What you need to know however, is that bankruptcy does not always get rid of your credit card debts. This is because it is possible for your creditors to file an adversary proceeding. They can ask the court for the credit card debt to be non dischargeable for two main reasons. They could either claim that you used the card without considering paying it back, or they could claim that you made a fraudulent application. It is a lot more common for an adversary to be made against you in respect of an intent not to pay the money back when you used the card.
If you increased the amount of spending on the card not long before you claimed for bankruptcy then you may still have to pay the money back. Exceeding your credit limit will also give the creditor an excuse to still make you pay. Basically anything that looks like you might have known that you could not pay the money back will be used against you.
Overall there are times when credit card debt can be cleared through bankruptcy but unfortunately many creditors do find ways of making you pay.
