Can you file for bankruptcy just on credit card dept and it not effect your home?

Answer 1

Answer

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.

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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.

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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.

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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.

Answer

Yes you can declare banrkuptcy on credit cards. Bankruptcy is not the last resort but the best option when you are unable to pay your debts.

Answer 2

The credit card debts were (doubtlessly) incurred honestly. The cards were used to make purchases and, in accordance with the cardholder agreement, the cardholder agreed to pay the issuing company for the things that were bought, plus interest. Use of the card means the cardholder owes the card company. It's just that simple. Now the cardholder wants to make a case in court to justify why the debt cannot be settled. The court is obligated to consider the facts. All of them. And apply the law to the facts. If a person has credit card debt, he can't simply declare an inability to pay them and fairly expect the credit card company to write off the debt. If an individual owes a debt and cannot (or will not) settle it, his assets can be attached. That's the underlying idea, like it or not, and the court will operate from this premise. Laws vary from place to place, but the basics are the same. If someone owes you a considerable sum and cannot or will not pay, you'd go to court to collect it and expect the court to force the individual to pay or to forfeit assets to make good on the debt. Why would the reverse situation, this situation right here, not be the same? Bankruptcy offers indebted individuals some options for damage control, but these are best sorted out with a professional. There are many of them, and they know the state law as regards sorting these things out. Most of them will offer free or low cost advice, at least upon an initial consultation, and their knowledge and experience should not be sold short. None of this is legal advice. It's common sense. Lastly, if I cut my finger, I wash the cut and apply a band aid. If I break my leg, I go to the doctor (or emergency room physician) for treatment. The more substantial the consequences of a given situation, the more inclined one should be to seek out professional services.

Answer 3

You file bankruptcy on everything you owe and everything you own can be used to pay. (With some very minor exceptions, like you diner table). You do not pick and choose what you file to discharge on.

Credit card issuers sometimes challenge the discharge of their debt in bankruptcy by filing an adversary proceeding claiming that the debt was incurred by fraud and therefore should be excluded from the discharge under §523(a)(2). This is sometimes called a "non-dischargeability action". Credit card debt may be non dischargeable in bankruptcy under either of two legal theories: * The application submitted to get the card was fraudulent * The card was used without an intent to repay; this is far more common This issue used to arise only in Chapter 7 prior to the 2005 bankruptcy code amendments. Now, creditors can contest the discharge of debts in a 13 as well based on a claim of fraud.

Answer 4

A basic, rough primer: BK is always done under Federal Laws, in a Federal Bankrutpcy Court. Basically State makes little difference. (Yes the BK Courts operating in certain areas have certain special exemptions and such, minor in the overall, generally intended to make things adhere to the local laws and customs better). In a personal bankruptcy, YOU go bankrupt. Not a debt, not a loan...not a car...not a this or that. ALL of your assets, of all types, MUST be disclosed and reported in BK, and ALL of your liabilities/debts must be too. No exceptions, no picking and choosing. They are all, always involved in some way.The court will then order each of them in priorities according to the laws. Some things may be exempt from use or discharge (like your personal furntiure and retirement accounts are exempt and child support cannot be discharged) - and the rest may be used. With one to pay the other. (All possible creditors are contacted and asked to say what they are owed....you may be required to even take advertisments out to make sure everyone is notified). Any deal you've done for several years is open to scruitiny and review. The court can reverse them, take them out of the BK, or even have them prosecuted as trying to defraud your creditors. (So, no you can't sell your boat to your brother and then declare BK). Debts secured by an asset (say a car) have first call or right to the money received from that asset. If it isn't enough to pay the debt, the remainder of that sdebt becomes a general or unsecured claim against the BK., and has a chance to payment on that level too (albeit a lower priority than those who have yet to receive anything). The end/remaining amount that can't be satisfied is generally discharged by the court...meaning you no longer owe it. You get a fresh basically debt free start....many of those you owe don't get paid what they had expected and relied on, if anything. There are many other considerations too. BK will severly hurt your ability to get credit for a very long time for example. It is on your credit report for at least 10 years...and employers refer to that too, as do landlords and more. Many do not rust people with bankruptcies in their past, especially in the last few years. Many more things. Not disclosing all items is frequently trie and easily discovered, in which case - as you are swearing under oath to the court you included all info - your case is dismissed, and regularly, fraud charges are pursued. (Courts don't take to being lied to well). The courts, Judges, laws, bankers, all those zillions of attornies, etc, have been through this thousands of times for many, many years. The processes are fairly well worked through and prepared for tricks and games. It is unlikely you would discover one that hasn't been tried a zillion times before! The Cos that claim they can change your record, or make magic happen (either before or after BK), are scams, and getting caught doing something unsavory (intentional or not), other than screwing up your bankruptcy filing, is frequently considered and persued criminally. (Think your financial troubles are bad, try adding in criminal ones). The legal process and system is demanding even for those experienced with it. Many of your creditors will have an attorney to assure they get as much as possible, even groups of lawyers, who specialize only in bankruptcy. Simply you should/better/need to have one too.

Answer 5

no