Most credit card providers try a whole range of collection options before finally going to court to sue for the unpaid balance. If you have reached this point, you either have a major issue with the credit card provider, or you have simply ignored all their requests for payment. It is generally not a good idea to constantly ignore payment requests from creditors. You owe the money and if you are struggling to make those payments, the least you can do is make them aware of this and to try and negotiate alternatives.

If your credit card provider has taken you to court, you have three choices. You can continue to ignore the debt, you can file an answer to the lawsuit, thereby challenging the debt, or you can file a petition for bankruptcy.  Once you file a petition for bankruptcy, a stay is issued and all other actions come to a halt.

Under a Chapter 7 petition for bankruptcy, all of your credit card debt should be discharged. Under a Chapter 13 petition, you will make payments for up to five years, then any outstanding unsecured balances will be discharged. While debtors can seek relief through the bankruptcy process, they need to be very careful in their approach.

If your credit provider has started action in the courts, their lawsuit may well be completed before you have even filed your bankruptcy petition. Bankruptcy will stay any court decision made during the credit provider’s lawsuit, however, one slip up in the bankruptcy process, and your petition could be dismissed, thus restoring the original court’s decisions. If you are in financial difficulty, talk to your credit provider early. Otherwise, talk to an attorney about a possible bankruptcy petition.

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  3. Discharging Credit Card Debt Through Bankruptcy
  4. Bankruptcy Is Not Always The Cure For Credit Card Debt
  5. The Sad Side Of Credit Card Debt