Can you just declare bankruptcy on your credit card debt?

Answer 1

• Yes you can but you must include all your debts including your home (if you have a mortgage),car loans and even your borrowed money from family members or friends. All of it. Because any indebtness you do not include cannot be added after the bankruptcy is filed. Then you have your attorney "Reassure" the debts you want to keep like your home, cars and even the credit card debt you still want after the bankruptcy is filed. Some debt cannot be removed. IRS Federal Liens, State Income or County Tax Liens and Student Loans to name a couple. Check with your attorney on the debts you cannot erase.
• Yes you can. I filed bankruptcy 2 years ago. I only filed on my credit cards and a couple doctor bills. My house was not affected because I had kept up with the payments and was never late or behind. My mortgage company was made aware of my filing and had to sign some kind of paper stating that I was not late or behind and it was ok with them for me to file and not include the house. So, as long as you arent behind on your house payments or car payments, you should be able to file just on your cards. Hope this helps! Good luck.
• The "Reassure" that V L refers to above, and the "some kind of paper" that Jaime refers to above, are actually called Reaffirmation Agreements (you were close, VL). Basically, when you file bankruptcy, you list everyone to whom you owe money. Then, if there are debts you want to keep, such as a mortgage loan or car loan (or both), you sign a Reaffirmation Agreement with the creditor and file the agreement with the Court. This agreement waives your bankruptcy discharge on the debt, and in essence puts you back on the hook for the debt, but lets you keep the property. I'm not giving legal advice, and nothing I say in this or any other posting should be contrued as legal advice, but it is my understanding that most lawyers advise their clients not to reaffirm any debts unless they are sure they can afford to repay them since reaffirming a debt allows the creditor to pursue you legally if you default on the debt later.
• If you are looking to get rid of your credit cards, and you have equity in your house, the trustee may not allow you to keep your house, regardless of whether or not you want to reaffirm your debt with the mortgage company. You may be forced to sell the house, and use the amount received over the mortgage balance to pay off your credit card companies.
• This depends on your state's exemption limits for home equity. For instance, if you owe $150,000 on a home now worth $155,000 you will need to see if your state exempts the first $5,000 in equity. If so, you are allowed to reaffirm the home if you wish.