Credit card bankruptcy is a question an increasing number of people are asking about.

It is easy to get a credit card. Eighty percent of households now have at least one credit card and with over a billion cards issued ,the average household now has approximately a dozen credit cards.

More concerning, is that over 60% of people carry forward credit card debt from one month to another with the average credit card household debt being more than $10,000.

No wonder that an increasing number of people are getting into trouble with their repayments and considering credit card bankruptcy as a viable option.

An indicator of this is that Google search trends on the topic, have almost doubled since 2007 and the trend is showing no signs of slowing down.

While bankruptcy is a consideration if you have extreme difficulty paying your debts, you should never act without taking professional advice. As with any area of the law, it is important to have all the facts, both on your debt and the law. Consulting a lawyer who is a specialist in this area is essential.

There is an option of filing for credit card bankruptcy under Chapter 13 or Chapter 7 of the code.

With a Chapter 13 filing, requires you will propose a payment plan to your creditors. The plan lays out how you intend to pay the debt and in what timeframe. This may be an option if you have regular income, but need time to repay the debt. It requires you to be quite disciplined in making future payments.

The Chapter 7 option works in quite a different way. Under this filing your possessions are sold and the funds from the sale, used to pay the people whom you owe money. If successful, your debts, including credit card debt, is wiped giving you the opportunity to start again.

Before you can file for bankruptcy you will be required to undertake credit counselling.

When filing for bankruptcy it is very important that you are honest about your debts and overall financial position.

A lack of honesty can result in you having your credit card bankruptcy overturned. For example, if you were to take on new credit cards and/or incur significant spending on your existing cards knowing you are unable to pay it is unlikely the application for bankruptcy on your credit card debt would be allowed. Similarly, if in any way you have been dishonest when applying for credit cards.

As a general rule, the bankruptcy option should be your last. You should explore all ways of clearing your debt before heading off down this path. Bankruptcy will have a material effect on your credit rating and ability in the future to borrow money for any purpose.