Chapter 7 vs. Chapter 13 Bankruptcy: Which Eliminates Credit Card Debt?

Mounting credit card debt can feel overwhelming. When minimum payments become impossible and collectors keep calling, bankruptcy might be your path to financial freedom. Both Chapter 7 and Chapter 13 bankruptcy can address credit card debt, but they work differently. Bankruptcy attorney Michael Schwartz can help you understand these differences and file the right option on your behalf.

Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy offers a fresh start by eliminating most unsecured debts, including credit card debt. This process typically takes three to six months and doesn't require a repayment plan.

Eligibility Requirements

To qualify for Chapter 7 bankruptcy, you must pass the means test, which compares your income to your state's median income. If your income falls below the median, you likely qualify. Those with higher incomes may still qualify if their disposable income after allowed expenses is...