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I have fallen into debt more than I can handle. I am thinking of filing for bankruptcy. I have read in various articles that nowadays it is difficult to file for bankruptcy under Ch 7. But my question is that if I include some credit card debts in bankruptcy, can I retain the cards. Or do I have to apply for new credit cards after bankruptcy is discharged. If I can retain the cards can I use them before bankruptcy is discharged?
Hi Davis,
It is obvious that you cannot retain the credit cards that are included in bankruptcy. In case you have a card that has $0 outstanding balance (not included in bankruptcy), you may not notify the card issuer that you have filed for bankruptcy. However, the card issuer may find out, if he reviews your credit records. In that case, whether the card issuer will allow you to the use the company's services (or see you as a risk for the company) is absolutely his choice. The credit card company may ask you to surrender the card.
You cannot use your credit cards before bankruptcy is discharged. Otherwise chances of running into debt once again, after bankruptcy is discharged becomes higher. Instead, you may use your debit card for all your purchases. You can start rebuilding your credit records after bankruptcy is discharged.
Davis465
Most of the CC companies do cancel the credit cards after BK but if you are lucky enough you could keep one.
One more thing is most CC companies offer secured credit cards so you can apply for these types of credit cards also.
keep in touch..