Credit card debt is the most common type of unsecured debt discharged in bankruptcy. For Miami residents, both Chapter 7 and Chapter 13 can eliminate or restructure credit card balances.
Credit card debt is unsecured and generally dischargeable in Chapter 7. Most Miami filers receive a complete discharge of credit card balances within 3-4 months of filing. The debt is permanently eliminated through the discharge injunction.
In Chapter 13, credit card debt is paid through your 3-5 year repayment plan based on your disposable income. Unsecured creditors often receive only a fraction of what is owed -- sometimes as little as 0%. The remaining balance is discharged at plan completion.
Under 11 U.S.C. section 523(a)(2), credit card debt incurred through fraud is not dischargeable. The presumption of fraud applies to:
These are rebuttable presumptions. You can overcome them by showing you did intend to repay or that the purchases were necessities, not luxuries.
Yes. Credit card debt is unsecured and generally fully dischargeable in both Chapter 7 and Chapter 13 bankruptcy. Most Miami filers in the Southern District of Florida eliminate their credit card balances completely.
Luxury purchases over $800 within 90 days or cash advances over $1,100 within 70 days are presumed fraudulent and may not be dischargeable. Wait at least 90 days after your last significant charge before filing.
Yes. All credit card accounts included in your bankruptcy will be closed. Credit card companies typically close accounts even if you are current. You can begin rebuilding credit with secured cards after discharge.
Yes, but filing bankruptcy stops any lawsuit through the automatic stay. In Florida, head-of-household wages are fully exempt from garnishment. For non-head-of-household, the federal limit of 25% of disposable earnings applies. Filing before a judgment is entered is generally preferable.
There is no minimum debt requirement. However, the costs of filing (court fees plus attorney fees) should be weighed against the amount of debt. For small amounts, negotiation or debt management may be more practical.
Yes. The automatic stay stops all collection activity the moment you file, including phone calls, letters, lawsuits, and garnishment. Violations can result in damages under section 362(k).