Credit card debt is one of the most common reasons that individuals file for bankruptcy. If you have high credit card bills that you are simply unable to pay, then bankruptcy might be the best option for you. However, you should be aware that, under certain circumstances, filing for bankruptcy may not eliminate your credit card debt altogether.

In some instances, credit card companies may choose to file what is known as a “adversary proceeding.” If successful, this proceeding will mean that the credit card related debt you have will not be taken care of by filing either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. Generally, this only occurs when individuals submit fraudulent or misleading applications in order to be eligible for a credit card or when debtors rack up charges on the card without having any intent to repay their spending.

In order to keep this from happening to you, you should be sure not to go over your credit limit, increase spending soon before filing for bankruptcy, borrow from the card in order to pay off another card, use the card when you do not have sufficient income coming in to cover charges, or use the card after you have had begun the process of consulting with a bankruptcy attorney. These activities are likely to send up “red flags” to credit card companies and may cause them to think that you are intentionally spending on the card with no intention of paying the company back. This is not only illegal, but it may hurt your chances of successfully filing for bankruptcy.

If, however, your situation is legitimate and you have tried many other options for repaying your credit card debt, then filing for bankruptcy should not be difficult. If you file for a Chapter 7 bankruptcy, your assets will be used to pay off the credit card debt, and

you can expect the bankruptcy to show up on your credit report for ten years. With a Chapter 13 bankruptcy, you will be given a certain amount of time in which to pay off your debts, and your credit score will only be affected for seven years.

Many people often worry that if they file for bankruptcy, they will never be able to obtain another credit card. Fortunately, this is not the case. If you use the bankruptcy as a tool to help you get back on your feet and to make better financial decisions in the future, you will be able to get another credit card. Many credit card companies will start you off small, with very low limits, and you might not be able to go with the top credit card companies, but providing you handle these cards and limits carefully, you can soon work your way back up to good credit and the ability to acquire any kind of card you want. We all make mistakes, and unfortunately, getting in over your head with the credit card companies is one of the most common ones. However, if you use this as an opportunity to learn from your mistakes and to make better decisions in the future, you will find that it is possible to recover from credit card debt and filing for bankruptcy.