Can I Exclude A Credit Card From Chapter 13?

Are you struggling with debt and considering filing for Chapter 13 bankruptcy? If you have a credit card that you want to keep using, you may be wondering if it’s possible to exclude it from your repayment plan. The short…

Are you struggling with debt and considering filing for Chapter 13 bankruptcy? If you have a credit card that you want to keep using, you may be wondering if it’s possible to exclude it from your repayment plan. The short answer is yes, but there are some important factors to consider before making this decision.

Firstly, it’s important to understand that not all debts can be excluded from your Chapter 13 repayment plan. Secured debts, such as a car loan or mortgage, must be included in your plan, while unsecured debts, such as credit card debt, may be excluded. However, if you choose to exclude a credit card from your plan, you will still be responsible for making payments on it outside of the bankruptcy process. It’s crucial to weigh the pros and cons of excluding a credit card before making a final decision.

Can I Exclude a Credit Card From Chapter 13?

Can I Exclude a Credit Card From Chapter 13?

If you’re considering filing for Chapter 13 bankruptcy, you may be wondering if you can exclude a specific credit card from the process. While the answer isn’t straightforward, there are some factors to consider before making a decision.

How Does Chapter 13 Bankruptcy Work?

Chapter 13 bankruptcy is a type of bankruptcy that allows you to reorganize your debts and create a repayment plan. This plan typically lasts between 3 to 5 years, during which time you’ll make payments to a bankruptcy trustee who will distribute the funds to your creditors.

While Chapter 13 bankruptcy can help you keep your assets and avoid foreclosure or repossession, it does require you to repay a portion of your debts. The amount you’ll need to repay will depend on your income, expenses, and the types of debts you have.

Can You Exclude a Credit Card from Chapter 13?

In general, you cannot exclude a specific credit card from your Chapter 13 repayment plan. When you file for bankruptcy, you must list all of your debts, including credit cards, and create a repayment plan that includes all of them.

However, there are some exceptions. If you have a cosigner on a credit card, they may be able to continue making payments on the card outside of the bankruptcy process. Additionally, if you’re able to pay off a credit card in full before you file for bankruptcy, you may be able to exclude it from your repayment plan.

What Are the Benefits of Including a Credit Card in Your Repayment Plan?

While it may seem like a good idea to exclude a credit card from your repayment plan, there are actually some benefits to including it. First, including all of your debts in your repayment plan can help simplify the process and make it easier to manage.

Additionally, including a credit card in your repayment plan can help you avoid legal action from the creditor. If you exclude a credit card from your plan and stop making payments, the creditor may take legal action against you to collect the debt.

What Are the Consequences of Excluding a Credit Card from Your Repayment Plan?

If you do decide to exclude a credit card from your Chapter 13 repayment plan, there can be consequences. First, you’ll still be responsible for making payments on the card outside of the bankruptcy process.

Additionally, excluding a credit card from your repayment plan may cause problems with your other creditors. If they see that you’re excluding one debt from the process, they may become more aggressive in pursuing their own debts.

Chapter 13 Bankruptcy vs. Chapter 7 Bankruptcy

If you’re considering excluding a credit card from your Chapter 13 repayment plan, you may be wondering if Chapter 7 bankruptcy is a better option. While Chapter 7 does not require you to repay your debts, it does involve the liquidation of your assets to pay off your creditors.

Additionally, not everyone is eligible for Chapter 7 bankruptcy. To qualify, you must meet certain income requirements and pass a means test. If you don’t qualify for Chapter 7, Chapter 13 may be your only option.

What Should You Do if You Can’t Make Payments on Your Credit Cards?

If you’re struggling to make payments on your credit cards, there are several options you can consider before filing for bankruptcy. First, you may be able to negotiate a payment plan with your creditors that allows you to make smaller, more manageable payments.

Additionally, you may be able to work with a credit counseling agency to create a debt management plan. This plan can help you consolidate your debts and make lower monthly payments.

The Bottom Line

While you may not be able to exclude a specific credit card from your Chapter 13 repayment plan, there are still options available to you. Before making any decisions, it’s important to speak with a bankruptcy attorney who can help you understand your options and create a plan that works for you.

Frequently Asked Questions

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a type of bankruptcy that allows individuals to restructure their debts and create a repayment plan to pay off their creditors over a period of three to five years. This type of bankruptcy is often used by individuals who have regular income and want to keep their property, such as a home or car.

What is the Automatic Stay in Chapter 13 Bankruptcy?

The automatic stay in Chapter 13 bankruptcy is a court order that stops most creditors from taking collection actions against you. This includes things like phone calls, letters, and lawsuits. The automatic stay goes into effect as soon as you file for bankruptcy and can provide immediate relief from creditor harassment.

What Debts Can I Include in Chapter 13 Bankruptcy?

You can include most types of debts in Chapter 13 bankruptcy, including credit card debt, medical bills, personal loans, and certain tax debts. However, there are some types of debts, such as student loans and child support, that cannot be discharged in bankruptcy.

Can I Keep My Credit Cards if I File for Chapter 13 Bankruptcy?

You may be able to keep some of your credit cards if you file for Chapter 13 bankruptcy, but you will likely have to give up others. Your bankruptcy attorney will help you determine which credit cards you can keep and which ones you will have to surrender.

What Happens if I Miss a Payment on My Chapter 13 Bankruptcy Repayment Plan?

If you miss a payment on your Chapter 13 bankruptcy repayment plan, your case could be dismissed. This means that you would lose the protection of the automatic stay and your creditors would be able to resume collection actions against you. It is important to make your payments on time and to communicate with your bankruptcy trustee if you are having trouble making your payments.

How to Rebuild Credit While in an Active Chapter 13 Bankruptcy


In conclusion, the answer is yes, you can exclude a credit card from Chapter 13 bankruptcy. However, it is important to note that the exclusion of a credit card from Chapter 13 bankruptcy is only possible in certain circumstances.

One of the requirements for excluding a credit card from Chapter 13 bankruptcy is that the debt must be a non-priority unsecured debt. If the debt is a priority unsecured debt, such as taxes or child support, it cannot be excluded. Additionally, the creditor must not object to the exclusion of the debt.

If you are considering filing for Chapter 13 bankruptcy and want to exclude a credit card debt, it is important to consult with a bankruptcy attorney. An experienced attorney can guide you through the process and help you determine if exclusion is possible in your case.

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