Can I still use my credit cards if I am filing a bankruptcy?
We meet a lot of people with a variety of different financial situations. We want you to know that we understand and will do everything in our power to help you, no matter what your situation or how you got in your situation. We also know that money gets tight and a lot of people rely on credit cards and other loans to get by every month. We know that a lot of people pay their minimum balance on their credit card and then have to go right back out and charge groceries or other necessary items on their credit card. This can create a viscous cycle of indebtedness and make it feel impossible to get out.
We can help. Many of our client are able to file a Chapter 7 bankruptcy and discharge all credit card debt. Of course, you are probably wondering whether you will ever get another credit card again. It is probably easier than you think. In fact, after you file your bankruptcy you will probably start to receive a lot of credit card offers in the mail. This is partially because these creditors know you cannot file for bankruptcy again and discharge all of your debts again, which makes you a relatively low risk.
Of course, we also have a number of clients who retain us to file bankruptcy before they are ready and have questions about credit card use prior to filing for bankruptcy. We know you are using them to get by, however, there can be negative consequences if you incur debt knowing you are going to file for bankruptcy. This debt could become non-dischargeable. It could be considered fraudulent and you may lose the ability to have any of your debts discharged. If this is something you are concerned about, or if you have incurred any type of debt recently we will need to discuss this in detail in our office. Of course, every situation is different so we cannot properly advise about every situation here. That being said, the general rule is to not incur any debt that you do not absolutely have to incur prior to filing for bankruptcy. Now, that certainly doesn’t mean that you need to skip a doctor appointment or not receive any sort of care that is necessary for your health. We have also been successful in arguing that some expenses, i.e. a new roof or a drivable vehicle, are necessary expenses.
If you have questions about this, or any other questions, please contact your St. Louis Area Bankruptcy Attorney today!