When you file a bankruptcy petition either Chapter 7 or Chapter 13, you can expect the following:

• All telephone calls and collection efforts by credit card companies will have to stop immediately. This also holds true for collection agencies or anyone else contacting you regarding past-due payments.
• Any lawsuits against you must come to a complete stop.
• If your wages or your bank account has been garnished, the garnishment must stop as of the date you file bankruptcy.

Creditor Challenges to the Discharge of Credit Card Debt

Be aware however that credit card companies will sometimes challenge the discharge of debt by filing a claim that the debt was fraudulently incurred. The most common claims are that the credit card was used to charge items and that there was no intent to ever pay the debt (large charges within the 90 days prior to bankruptcy) or that you submitted a credit application that was fraudulent.

If you have used your credit cards and incurred substantial debt within the 2-3 months time frame just before filing bankruptcy and a creditor challenges the discharge, you may not get relief for those debts and have to pay them.

Once the decision is made to file bankruptcy, you should stop using all of your credit cards to avoid any appearance of impropriety that creditors may try to use in challenging the discharge.