Many consumers file Chapter 7 bankruptcy to wipe out unsecured credit card debt. Most credit card debts are dischargeable in Chapter 7 bankruptcy. At Toscano & Wilson, your attorney will make sure that your debt will be eliminated before you decide to file and make sure that you avoid any spending behavior that could make your credit card debts non-dischargeable.
Chapter 13 reorganizes your debt to be repaid over a period of 3 to 5 years. Credit card debt is generally unsecured debt and as such it has the lowest priority in a Chapter 13 bankruptcy. This type of bankruptcy lists all creditors as well as your plan to repay them. In Chapter 13, you and your attorney propose a plan to be confirmed by the court that prioritizes your home, automobile, tax, and support obligations to allow you to pay off your most important debts and still get a financial fresh start.