Credit Card Bankruptcy

Best credit card bankruptcy options

For individual filers, credit card bankruptcy accounts for approximately 95% of all cases filed. Of these cases, 98.4% of all individuals choose Chapter 7 or 13. The cost of filing and administration in these two types of cases is minimal compared to a Chapter 11 administration, and implicitly includes the right to either eliminate all credit card debt or repay as little as 10% before discharge.

Comparing credit card discharge options

For quick and easy credit card elimination, Chapter 7 discharges debts in a as few as 4 months. Once discharged, no further payments are due and creditors are prohibited by law from asserting the debt to anyone, including third parties and credit reporting agencies. Chapter 13 takes longer but provides many more options, yet still discharges all debts owed at the end of the plan. Plans last from between three years to five years, depending upon several factors that are unique to each individual.