When people consider the option of filing for bankruptcy, a common question is what the statute of limitations is on various types of debt. That impacts the amount of debt that needs to be addressed in your bankruptcy. The Philadelphia statute of limitations on debt involving credit cards is four years. That means that companies can’t attempt to collect on Philadelphia credit card debt that’s older than four years, if you meet a few conditions.

Credit Card Debt in Chapter 7 Bankruptcy

Aside from the debt statute of limitations on credit cards in Philadelphia PA, a common question is whether credit card debt is dischargeable in a Chapter 7 bankruptcy. Generally, credit card debt, like other unsecured debt, is dischargeable once the Chapter 7 process is completed, as long as there was no fraud involved — including running up a large credit card balance in anticipation of filing for bankruptcy.

What Happens to Credit Card Debt in Chapter 13 Bankruptcy?

The same four-year Philadelphia statute of limitations on credit cards applies in Chapter 13. Credit card debt can be included in a Chapter 13 repayment plan. The amount paid on unsecured debt in many cases is pennies on the dollar or even $0.  The only unsecured debt you will need to repay is equal to the amount of your “nonexempt property.” Therefore, you’ll likely not need to repay anywhere near the full amount owed on debts that fall within the Philadelphia statute of limitations on debt.

What Can We Offer You?

At The Law Offices of David M. Offen, we have provided our clients with:

  • Over two decades of experience
  • More than 9,500 bankruptcy cases
  • Discharge of over $75 million in debt

Contact Us for More Information about Philadelphia Statute of Limitations on Debt

For more information on the statute of limitations on debt in Philadelphia PA and on how bankruptcy can help you get out from under the burden of credit card debt, call us or contact us online to schedule a free consultation.