Can I file bankruptcy with credit card debt? The short answer to this question is YES. Credit card debt is one of the common reason that people file for bankruptcy. Once your case gets filed the credit card companies and their collection agencies can no longer harass you with phone calls and letters or something more serious such as a court action against you. Depending on your situation and which type of bankruptcy you file (Chapter 7 or Chapter 13) most, if not all, of those credit card debts can eventually be discharged under the court’s approval.
On the other hand, if you are asking whether or not you could file bankruptcy solely for your credit card debts, then the answer would be NO. You need to be aware that filing for bankruptcy does not allow you to pick and choose which debts you disclose. You will be required to provide the court with information for all of your debts – not just credit cards. What this means that you have to disclose any home, student, or car loans, medical bills, child support, taxes, and any other balances that you haven’t yet paid, in addition to your credit card debt. Once your bankruptcy has been filed, “the bankruptcy court determines which debts can be discharged and which can’t” Source: The Nest
Just filing for bankruptcy doesn’t always mean that you will no longer have to pay off any of your debts since some debts will survive bankruptcy. So for example, it is common for tax debts, student loan debts, and child support/alimony to be considered nondischargeable debts (i.e. those that you are still required to pay regardless of filing for bankruptcy). Additionally, consumers who carelessly accrue credit card debt thinking that they can simply have it wiped out by declaring bankruptcy, can be deemed to have committed fraud and the bankruptcy court can declare those debts as nondischargeable. As of 2016, the federal rule outlining fraud was for any purchase of luxury items (jewelry, vacations; other expensive and non-necessary items) amounting to more than $675.00 within 90 days of filing, so keep these things in mind, both when using credit cards and when deciding to file for bankruptcy.