With credit cards as easy to get as ever and disruptions to income, such as job loss or serious medical disability, occurring to people every day, it’s no wonder that credit cards make up a large portion of discharged debt in bankruptcy. Here are a few things to note when considering bankruptcy as an option for debt relief.
Once you have filed a Chapter 7 bankruptcy, credit card companies can no longer contact or harass you for payment or will be in violation of law. After Chapter 7 bankruptcy, your credit cards should show your account as discharged through bankruptcy. The 30, 60, 90 days late should be removed. You may want to contact Harold Shepley & Associates to see if even the bankruptcy notation could be removed through credit restoration. It’s wise to check your credit reports and confirm this after your case is closed.
Many people often want to keep credit cards with small balances out of the bankruptcy. However, all debts no matter the size must be included. You cannot prefer one creditor over another.
You cannot keep any credit cards out of your bankruptcy case, unless the balance on your credit card is zero. A zero balance creates no debt obligation and therefore you don’t need to disclose it in your filing.
Contrary to what you might believe, you will be able to get a credit card after bankruptcy. The only question is how much is the interest rate? Companies often send debtors offers for cards after bankruptcy, knowing they cannot file again for a number of years. Also, shedding your debt makes you attractive to lenders who know you can take on new debt. Of course, you should exercise caution in taking on any new credit after filing for bankruptcy.
If you have additional questions regarding how bankruptcy might affect your situation, contact an experienced debt relief law firm such as Harold Shepley & Associates. They will be able to answer your questions with a free consultation.
Contact us today at 1-866-284-7062 or visit us at www.shepleylaw.com to find out more information on your debt relief options.