I'm not sure what the above intended, but it is incorrect to think there is any quality or quantity of debt required to file. Many people go BK on just credit card debt (probably the most common thing in fact), with no secured or priority debt. (In fact, generally a credit card co that gets a judgment and can secure it to a property of yours...probably won't have the BK clear it, as judgments aren't covered in BK).
But you should also note that BK doesn't just eliminate debts...or debts of your choice.
You go bankrupt, not the debt. It involves all of your assets and all of your debts. In basic form...all of your assets (again minus some few exempt things), are surrendered and liquidated with the money used to pay as much of the debts as possible (all debts are given a priority - first as secured like a car loan or unsecured which means against everything generally)...some are paid more, some less)...any resulting deficiency may be eliminated (wiped clean). You do not get to get rid of the debt AND keep what you may have gotten with it, (or invested/paid for elsewhere, instead of paying the amount owed).
Exemptions under Federal law, which may change a little in State applications by the Federal BK Courtyou file in:
Personal and Real Property:
(1) Household: Up to $425.00 per item not to exceed a total of $8,625.00 (includes animals, appliances, books, crops, furnishings, household goods, clothing, Musical Instruments)
(2) Jewelry: Up to $1,075.00
(3) Vehicles: Up to $2,575.00
(4) Work tools (implements, books and tools of trade): Up to $1,625.00
(5) Health aides (wheelchair, etc.): Unlimited
(6) Burial plot: Up to $16,500.00 (in lieu of real estate exemption)
(7) Real estate (house, co-op or mobile home): Up to $16,150.00
(8) Any property: Up to $8,075.00 of unused portion of real estate exemption
Wages, Pensions, Recoveries and Benefits:
(1) Wages: None
(2) Wrongful death funds: Amount needed for support
(3) Personal injury funds: Up to $16,500.00 (excluding that for pain and suffering or pecuniary loss)
(4) Lost earnings payments: Unlimited amount
(5) Retirement benefits: Amount needed for support
(6) Alimony / child support: Amount needed for support
(7) Unemployment compensation: Unlimited amount
(8) Veterans benefits: Unlimited amount
(9) Social security benefits: Unlimited amount
(10) Public assistance: Unlimited amount
(11) Crime victims compensation: Unlimited amount
Insurance:
(1) Disability: Unlimited amount
(2) Unemployment benefits: Unlimited amount
(3) Unmatured life insurance: Unlimited amount
(4) Life insurance policy loan value, dividends or interest: Up to $8,625
(5) Life insurance proceeds: Amount needed for support
If you're doing a Chapter 7 bankruptcy, you can't discharge:
Debts arising from fraud or maliciousness are not automatically excepted from discharge. The creditor must make a request to the court to except these types of obligations; otherwise they will be discharged
You credit card debt, for the most part is discharged when you file for bankruptcy. As soon as a debtor files for bankruptcy, there is an automatic stay and most creditors must stop their collection efforts. Thus, the debtor can begin rebuilding his credit; financially-speaking, the debtor can start over.
A Chapter 7 BK can eliminate credit card debt.
You have to, it is a debt...it is just a secured debt...by the lien on the property.
Credit card debt consolidation with the help of an accountant or a debt consolidation service and careful management of income can be helpful steps in reducing your credit card debt without declaring bankruptcy.
There are many places where one can get help for credit and debt bankruptcy. For example, Debt Advisors Scotland, Consumer Information and Total Bankruptcy.
file bankruptcy
"Whether a debtor keeps credit cards after filing bankruptcy is up to the credit card company. If you are discharging a credit card they will cancel the card unless you reaffirm the debt. Even if you have a zero balance the credit card company might cancel the card."
Bankruptcy would be more credit damaging than just having large credit card debt, mainly because it stays on your credit report for longer. One of the biggest disadvantages of filing for bankruptcy is the lasting effect it has on your credit report- typically staying on your report for 7-10 years. With credit card debt there are more flexible options and obviously when you pay the debt and does not stay on your report for as long.
== == NO, you have to turn in any credit cards and include the credit card debts in the bankruptcy. You can't pick and choose what debts you are going to include.
No. The card holder is responsible for all debt on the credit they extended to him. (You may be responsible to the credit card holder for the debt he incurred for you, if that was your agreement).
There is no legal way to erase credit card debt without filing for bankruptcy. If this was possible, then the inventor would be extremely rich, and no-one would have any debts.
credit card debt
You are not supposed to do this. You need to list all of your debt. In all likelihood, what will probably happen is that the credit card will find out about it anyway and cancel the card. Even if you have a 0 balance, the credit card will probably take it upon themselves and cancel the card.