Yes, you can include credit card debt in a bankruptcy filing
Credit card debt is one of the most common types of unsecured debt included in bankruptcy. When you file for bankruptcy, your credit card balances become part of your case, and the court process determines what happens to them — whether they are discharged (erased), reorganized into a repayment plan, or handled another way depending on which chapter you file under.
The two main bankruptcy chapters for individuals are Chapter 7 and Chapter 13. Chapter 7 typically erases credit card debt entirely if you meet the income and asset requirements. Chapter 13 creates a three- to five-year repayment plan where you pay back some or all of your credit card balances through the court, and remaining balances may be discharged at the end. Both routes treat credit cards the same way — as unsecured debt with no collateral attached.
Key Takeaways
- Credit card debt can be included in both Chapter 7 bankruptcy (which erases it) and Chapter 13 bankruptcy (which reorganizes it into a repayment plan).
- You must list all credit cards and all balances in your bankruptcy filing — hiding accounts or debts is fraud and can result in criminal charges.
- The bankruptcy court freezes collection calls and lawsuits the moment you file, even if you have not yet appeared before a judge.
- Your credit report will show the bankruptcy for seven to ten years, but many people rebuild credit within two to three years after discharge.
- You will need to complete credit counseling before filing and a financial management course after, both of which are court-mandated steps.
Chapter 7 bankruptcy erases credit card balances entirely
Chapter 7 is called "liquidation" bankruptcy because the court sells your non-exempt assets and uses the money to pay creditors. Credit card companies are unsecured creditors, meaning they have no claim on your house, car, or other property — they are paid only after secured creditors (like mortgage lenders) and priority creditors (like the IRS). In most Chapter 7 cases, credit card debt is erased completely at the end of the process.
To file Chapter 7, you must pass the means test, which compares your household income to the median income in your state. If your income is below the median, you pass automatically. If it is above the median, the court calculates whether you have enough disposable income each month to pay back creditors — if you do not, you still pass. The means test exists to prevent high-income filers from erasing debt they could actually repay.
Chapter 7 typically takes three to six months from filing to discharge. During that time, you attend a creditors' meeting (usually brief and routine), provide financial documents to the trustee, and wait for the court to issue your discharge order. Once discharged, the credit card companies can no longer pursue you for those debts.
Chapter 13 reorganizes credit card debt into a repayment plan
Chapter 13 is called "reorganization" bankruptcy because instead of erasing debt, the court creates a repayment plan lasting three to five years. You make one monthly payment to a court-appointed trustee, who distributes the money to your creditors according to the plan. Credit cards are unsecured debt, so they are paid after priority debts (taxes, child support, recent income taxes) and secured debts (mortgages, car loans), but before other unsecured creditors.
Chapter 13 is often chosen by people who have a regular income, want to keep their house or car, or owe too much to pass the Chapter 7 means test. The plan amount is based on your disposable income — money left over after necessary living expenses. If you cannot afford to pay back all your credit card debt over five years, the remaining balance is typically discharged at the end of the plan.
Chapter 13 takes longer than Chapter 7 — the repayment plan runs three to five years, and you must complete all payments before receiving a discharge. If you miss payments or your financial situation changes significantly, the trustee or creditors can ask the court to modify the plan or dismiss the case.
You must list every credit card account in your filing
Bankruptcy requires you to disclose all debts, including every credit card account, every balance, and every creditor. The bankruptcy petition is a legal document filed under oath, and omitting accounts is fraud. If a creditor discovers you hid a credit card account, they can ask the court to reopen your case, and the debt will not be discharged. In serious cases, hiding debts can result in criminal charges.
This includes credit cards you are not currently using, cards with zero balances, store cards, gas cards, and any account where you are an authorized user or joint account holder. If you are unsure whether an old account is still active, contact the card issuer or check your credit report before filing — your bankruptcy attorney will help you gather this information.
The court also requires you to list the creditor's name, the account number, the balance owed, and whether the debt is secured or unsecured. Credit cards are always unsecured unless you have pledged collateral (which is extremely rare). Your attorney will help you organize this information into the official bankruptcy schedules.
Collection calls and lawsuits stop when ready after filing
The moment you file for bankruptcy, an automatic stay goes into effect. This is a court order that stops creditors from calling, sending letters, filing lawsuits, or taking collection action against you. If a credit card company continues to contact you after you file, that is a violation of the automatic stay, and you can report it to your bankruptcy trustee or attorney.
The automatic stay applies to all creditors, including credit card companies, collection agencies, and debt buyers. It remains in place throughout your bankruptcy case — in Chapter 7, typically three to six months, and in Chapter 13, for the entire three- to five-year repayment plan. If you file Chapter 13 and later convert to Chapter 7, a new automatic stay takes effect.
If you receive a collection call after filing, tell the caller that you have filed for bankruptcy and provide your case number. Do not make any payments or agree to any terms — all debts are now handled through the bankruptcy court, not directly with creditors.
Bankruptcy appears on your credit report for seven to ten years
A Chapter 7 bankruptcy stays on your credit report for ten years from the filing date. A Chapter 13 bankruptcy stays for seven years from the filing date. During this time, the bankruptcy is visible to lenders, employers, landlords, and anyone else who pulls your credit report.
However, the impact on your credit score decreases over time. when ready after discharge, your score may drop significantly, but many people see improvement within one to two years as they rebuild credit with a secured credit card, become an authorized user on someone else's account, or take out a credit-builder loan. By the time the bankruptcy falls off your report, your score may be substantially higher than it was during the filing.
Some lenders specialize in post-bankruptcy credit, and you may be able to refinance a mortgage or car loan within three to five years of discharge, though interest rates will be higher than for borrowers with no bankruptcy history.
You must complete credit counseling and financial management courses
Before you can file for bankruptcy, you must complete a credit counseling course from a court-approved provider. This course covers budgeting, debt management, and alternatives to bankruptcy. It typically takes one to two hours and costs between $10 and $50. You can take it online, by phone, or in person.
After your bankruptcy is discharged, you must complete a financial management course, also from a court-approved provider. This course covers topics like rebuilding credit, managing money, and avoiding future debt. It also takes one to two hours and costs $10 to $50. You cannot receive a discharge without completing this course.
Your bankruptcy attorney will provide you with a list of approved providers in your state. Both courses are required by federal law and are part of the bankruptcy process itself, not optional steps.
Frequently Asked Questions
Can I keep one credit card and not include it in bankruptcy?
No. You must list all credit cards and all debts in your bankruptcy filing. If you try to hide a card or pay it off before filing to keep it active, the trustee may investigate the payment as a fraudulent transfer. The only way to keep a credit card is if someone else is the primary account holder and you are not liable for the debt.
What happens to credit cards after my bankruptcy is discharged?
The credit card accounts included in your bankruptcy are closed by the creditors. You cannot use them again. However, you can explore for new credit cards after discharge — many issuers offer post-bankruptcy cards with higher interest rates and lower credit limits. Building a history of on-time payments on new accounts helps rebuild your credit score.
Will my spouse's credit cards be affected if I file for bankruptcy alone?
Only if your spouse is a joint account holder or co-signer on the card. If your spouse is an authorized user but not liable for the debt, their credit is not affected. If you are both liable, your spouse should consider filing jointly to protect their credit as well. Consult your bankruptcy attorney about your specific situation.
Can I file bankruptcy if I have already been sued by a credit card company?
Yes. Filing for bankruptcy stops the lawsuit when ready through the automatic stay. The credit card company cannot continue the lawsuit or obtain a judgment against you once you file. The debt becomes part of your bankruptcy case instead.
How much does it cost to file bankruptcy?
Court filing fees are $335 for Chapter 7 and $310 for Chapter 13. Attorney fees vary by location and complexity but typically range from $1,000 to $3,000 for Chapter 7 and $2,500 to $6,000 for Chapter 13. Many courts allow you to pay filing fees in installments, and some attorneys offer payment plans. Legal aid organizations may cover costs for low-income filers.