Credit cards can often come in handy, but people who have multiple cards may soon realize that many payments being spread throughout the month is difficult to keep up with. There’s also the matter of the interest that’s added each month, which has an average annual percentage rate of more than 20% on credit cards in the United States, as of June 2026.
Those factors together, along with the rise of basic expenses that’s occurring currently, can make it difficult to pay off credit cards or get them down to a manageable balance. For those who are struggling to make required payments and still keep up with normal expenses, finding a way to reclaim their finances is likely a priority. One option that’s sometimes an excellent choice involves filing for bankruptcy.
How does bankruptcy address credit card debt?
A bankruptcy filing requires that you name all debts, including credit cards, that can be handled in a bankruptcy. Typically, credit cards are included in bankruptcies. If you file a Chapter 7 bankruptcy, you likely won’t owe the credit card debt once the bankruptcy is discharged.
When you file for bankruptcy, the court issues an automatic stay. This means that creditors can’t contact you to collect payments on your credit cards while your case remains outstanding either.
If you file a Chapter 13 bankruptcy, you’ll make regular payments to a bankruptcy trustee. The bankruptcy trustee distributes them to creditors. Instead of paying multiple credit card payments directly, you will only make the payments to the bankruptcy trustee. Once the bankruptcy is discharged, you won’t owe more on those credit cards. If you file for Chapter 7, your eligible credit card debts will be discharged in full at the end of your successful case.
Filing bankruptcy is a legal tool that allows you to get a fresh financial start when your debt is more than your finances can handle. Learning about the process and ensuring you’re handling it properly are critical, so working with a legal professional familiar with bankruptcy is wise.
