Is credit card debt wiped off after filing bankruptcy?

Good post! I have read about these 'secured credit cards' and wondered exactly how they worked.

Great information!:D Thanks Lisa, for posting it in the forums.

I filed for bankruptcy in 2000 and I remember when I was at the hearing in the courthouse, there were multiple credit card companies there waiting to talk to people who were filing bankruptcy. I remember specifically that the creditors were Sears, CapitalOne, and Orchard Bank. There were others there as well but I don't remember the names.

What was the purpose of the creditors being there if the debt is just going to be discharged?

-D. Garrido

When you were at the hearing, it is a meeting of the creditors. They have it so the creditors can be there and see whats going on and ( I don't know how to say this :oops: ) dispute the BK and see if there is any way that they can get some of thier money. With most of the BK filings you will not see any creditors showing up, because with most people it is a lost cause because they don't have much.

Lisa, I had some problems with some creditors after I filed for BK. Some still reported on my CR and some were still trying to collect from me even after it had been discharged. All I did was call my lawyer and he took care of all of that for me.

When I filed bankruptcy in 1997, my attorney asked me if I had any accounts with those or a few others specifically becasue they WOULD show up at the hearing and try to dispute the BK. INteresting that since then Sears has sold their Credit Card business to Citibank (you may have a Sears Chsrge account, but its really a Citibank account). Capital one and Orchard bank (and a few other slime balls) specialize in preying on those with spotty credit histories. They take the gamble, but hate to loose.

The laws have changed within the last year for Chapter 7 and 13. I believe even in a Chapter 7 you need to take a means test that is set up to see how much you can pay back your creditors or to see if you can pay at all. A few years ago, a Chapter 7 wipped out most if not all of your debt for a new start but the credit card companies and Banks who are affiliated with our most high goverment and the laws went to their favor...go figure.

Luke

You are 100% correct Luke.

The means test is designed to decide which chapter you are eligible to file.

If you are able to pay back a portion of your debts, you will be required to file chapter 13.

Chapter 7 still wipes out all your dischargable debts.

Thank you ladybug, thats nice. goudah2424, you are wise.

When you say it wipes out all your debts, does that mean that they come off your credit report? How does that work?

No, they don't come off your credit report, you just don't owe the money anymore. Your credit report will show that the debt was discharged in bankruptcy.

So it falls off at the normal date still though right? Like one says it will be removed in OCT. 2010.