Vivian M. Williams & Associates, P.C.

Defending People's Rights & Freedoms




For Westchester Office Call



Would My Credit Cards be Canceled After I File Bankruptcy?

There is no hard and fast rule as to whether you would be able to keep your credit card after you file for bankruptcy. Generally, your credit cards are canceled when you file for bankruptcy. Because you would be required to notify the creditors you are indebted to when you file bankruptcy. Once they receive notice of the bankruptcy filing, creditor card companies usually cancel your credit cards as a precaution.

If you do NOT have an outstanding balance on a credit card at the time of filing bankruptcy you do NOT have to list that credit card in your bankruptcy schedules. This means that you do NOT have to give the credit company for cards that do NOT have an oustanding balance notice of your bankruptcy filing. For these cards there is a likelihood that the cards would remain active. You should however, note that some credit card companies run checks and may discover your bankruptcy filing even if you did not notify them directly.

If you have a particular credit card that you want to use after filing bankruptcy, you could file what is called a reaffirmation agreement. This is an agreement to repay the debt owed to the particular creditor rather than have it discharged. With a reaffirmation agreement, credit card companies are likely to permit you to use the card after bankruptcy, though it is left to the discretion of the credit card company. It is recommended that you speak with a bankruptcy lawyer before signing a reaffirmation agreement.

Would Bankruptcy Ruin My Credit?

There is no doubt that bankruptcy affects your credit record. The debts that you may discharge in a chapter 7 bankruptcy Icould however, have an even greater impact on your credit worthiness you do not have the means to pay them. Thus, it is a matter for careful analysis when considering the impact of a bankruptcy filing on your credit worthiness. 

Though bankruptcy leaves a negative mark in your credit profile, it creates a fresh start  for the debtor. This often leads down a road to new credit after bankruptcy. My experience has been that creditors pursue persons after bankruptcy discharge for new credit. The fear that a bankruptcy filing in and of itself would result in an inability to obtain credit for several years after bankruptcy is exaggerated.



Could I Get a Mortgage to Buy a House After Filing Bankruptcy


May people who file bankruptcy get mortgages after they file for bankruptcy. Bankruptcy is designed to give you a fresh start. Though it remains on your credit report for a number of years you may still be able toobtain a mortgage ro purchase property after you file bankruptcy. 

Vivian M Williams & Associates PC on LinkedIn