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Bankruptcy Law

Can you use credit cards before filing for bankruptcy?


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Answered 2009-08-07 20:37:45

What, and leave me to pay your bills? Don't be a parasite on society!

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Bankruptcy is the filing of a petition that claims your assets, and your inability to pay for them. Bankruptcy severely effects your credit, and is present on your credit for 7 years. During this time getting credit cards or loans can be very difficult.


The judge may disallow those debts from the bankruptcy because you are obviously attempting to defraud the credit card company.


You need to notify the Credit company, once you've done that you may suspend payments.


No. If you are seriously considering filing for bankruptcy, then you should not use nor pay on your unsecured credit cards. This is due to the fact that you are going to be eliminating those debts. You will need that money to pay your court costs and attorney's fees when filing for bankruptcy.


"Whether a debtor keeps credit cards after filing bankruptcy is up to the credit card company. If you are discharging a credit card they will cancel the card unless you reaffirm the debt. Even if you have a zero balance the credit card company might cancel the card."


No, however once you have completed the 1 year term of bankruptcy you can then apply for a pre-paid credit card to begin rebuilding your credit.


Once your bankruptcy has been dismissed, you can apply for and receive new credit. It is not recommended but many people do get new credit cards after filing. Usually a company included in a bankruptcy will not extend credit to you again.


Bad credit is not the only disadvantage to filing for bankruptcy. The most obvious disadvantage of filing for bankruptcy is that it will ruin your credit for at least 7-10 years. Some other disadvantages include:* Losing credit cards* Losing non-essential possessions* Inability to obtain a mortgage for some time* Embarrassment* Not all debt will be discharged


No. The only thing that it will wipe out as far as debt is credit cards and bills, not mortgages or school loans. Any government loan is not taken care of by filing bankruptcy.


To get credit cards after bankruptcy you can apply to credit companies that you haven't had previous experience with or go with your old company and get a card with a lower limit on it.


No, just the opposite. Bankruptcy is the ultimate "train wreck" of a person's financial standing. Even after the ten year SOL there will be a public record, and the consumer will still be penalized for it. Bankruptcy, is not, as some are led to believe, the magic cure for debt problems.


When going into bankruptcy, your credit card accounts will be cancelled as a result, so you will NEVER be able to use your credit cards if you go into bankruptcy. Depending on the type of bankruptcy, you will be able to apply for new credit cards (and other loans) after seven (7) or ten (10) years.


The most obvious disadvantage of filing for bankruptcy is that it will ruin your credit for at least 7-10 years. Some other disadvantages include: * Losing credit cards * Losing non-essential possessions * Inability to obtain a mortgage for some time * Embarrassment * Not all debt will be discharged Because of all those reasons, it is really important to take that into consideration before filing!


Ask your attorney, but many judges would consider this intentional fraud and may disallow the credit cards as part of the bankruptcy. It is certainly not honest to buy things knowing you don't intend to pay as agreed.


You can declare bankruptcy due to credit card debts, yes.


In general people have the idea of having fun in life. That's actually how life should be looked up to. It's absolutely fine and great as long as you make life fun. But things don't quite fall in place when life makes fun of you. Things do turn bad then. It's also bit relaxing if it challenges you only on an emotional level. But when it reaches financial level, it turns ugly. But then, there's always an option open. When you are completely down with your finance and buried under the jaws of debt, bankruptcy is something that helps you. When you are completely down with money and debts creeping high up, you can always opt for filing for bankruptcy. A bankruptcy attorney will help you do that. He will definitely tell you that while filing for bankruptcy credit cards should be avoided as much as you can. Taking into consideration what your case or situation is, the attorney will give you a plan for filing bankruptcy. Usually the consumers file under two chapters. The two chapters being chapter 7 and chapter 13. Under chapter 7 the various debts are dismissed where as under chapter 13 repayments is done to the different creditors. Most of the attorneys would talk about credit card bankruptcy. That's because most people file bankruptcy because of extensive credit card use. Most of the people rely completely on credit cards. That's where they miss a few tricks. For an example let us say you have something like $15000 as debt on your credit card and you send a minimum payment of say about 3 %. This would mean you would require too many years to clear off your debts. So it is advisable to stop using credit cards bankruptcy. Whenever you estimate filing for bankruptcy please stop using you credit cards as soon as possible. There are few more reasons for that also. And purchases worth $500 made from a single creditor on or before 90 days of filing for bankruptcy or if and cash advances are done worth $750 on or before 70 days before filing for bankruptcy may not accepted for clearance of debts. In fact it may come under scrutiny as a case of fraud. So to put in a very simple way, usage of credit cards must be stopped as soon as an anticipation of bankruptcy.


Yes, it is still possible to get a credit card after bankruptcy. "Secure" credit cards require you to place a security deposit down in the event of default, but they are a good way of rebuilding your credit.


No, do not make any payments until told to to so. Then it will only be the secured debts ( house-car ) that you will be keeping.


Yes. If you declare bankruptcy you must declare all cards, loans, assets and debts.


Yes but the Judge will likely require you to pay those cards. He may believe that you are intentionally defrauding the credit card company.


Sometimes credit card charges are not included in bankruptcy. If they are then you will no longer be able to use them.


Chapter 7. The credit cards would be unsecured debts.



When in bankruptcy it is not possible to have a credit card. Once the terms of the bankruptcy have been met, some credit card companies will consider issuing a credit card to some people.


Yes, but when and how much depends not only on the lender - but what type of loan and your payment/income, etc history since the BK. Any blemishes are a very bad thing.



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