Q: Is there a limit to the amount of credit card debt to file for bankruptcy, Chapter 7? Thank you.
A:
There are no eligibility limits for debt to file a Ch. 7 case; there are income ceilings, however. (Unlike a Ch. 13, for which there are debt limits for both secured and unsecured debt totals).
A cautionary note- any charges made to a credit card within 90 days prior to the filing of a bankruptcy are presumed to be non-dischargeable.
In addition, if it appears that there was a run-up of credit card debt in contemplation of a bankruptcy filing, there may an issue about abuse of the bankruptcy process, and if proven by creditors or the trustee, a discharge may be denied.
Credit card companies monitor accounts to detect that sort of "abuse".
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