How to Maintain Credit Cards During Bankruptcy

How to Maintain Credit Cards During Bankruptcy

www.Savedme.com 800-728-3363 800-SAVEDME. Bankruptcy Attorney Jamie Ryke from the Law Offices of www.FreeBankruptcyEvaluation.com talks about the Truth about Bankruptcy. You can speak to him directly. If you Can't get a loan? File Bankruptcy. talks about credit cards companies targeting bankruptcy filers.

summershot.net Credit card companies target bankruptcy filers.

Greg Krikorian, the Republican candidate in the Glendale area's 43rd assembly district, said it was his wife's debt and that she filed for bankruptcy protection. He was added as her co-debtor, but says he didn't know about her spending as she racked up ... 'Fiscal conservative' candidate uses bankruptcy to escape credit card debt

When you lose your job or have overwhelming medical bills, there is often no alternative but to declare bankruptcy. The proceeding is before a judge who looks over all of your documentation and asks questions about your circumstances. If the bankruptcy judge is satisfied, your debts will be discharged. The BK, as it is known, will remain in your credit file for the next ten years. That's a long time to prove that you are worthy of obtaining credit or financing.

Whatever debts you owed, either on credit cards or personal loans etc. that are placed in the BK are discharged - generally. The judge may decide that you need to pay something off, but only on rare circumstances. Now, here is the interesting part. You must declare all of your creditors - that's the law - including credit cards, utility bills, and every other debt you have record of at the time.

Before 2005, when the law was re-written in favor of the credit card companies, you could sign a reaffirmation agreement with the creditor that you wanted to keep.

That meant that you want to pay the creditor and keep the credit, which most creditors allowed you to do. But the new law states that you can no longer do that, but you may have the judge sign it in a second hearing, providing the card issuers agree. By signing the agreement and repaying your obligation on time, you work to rebuild your credit.

The second method is to apply for a secured credit card after your bankruptcy. A secured card, at least the better ones, report each month to the 3 bureaus: Equifax, Experian and TransUnion, and this will also help rebuild your score. A secured card is also known as a prepaid or debit card.

Piggybacking on to a relative's credit is also a method that helps rebuild your credit quickly.

There is no chance of the family member worrying about bankruptcy since you can't file bankruptcy while you're already in it. Many banks will allow you to work with a relative with good credit because of the educational and mentoring benefits inherent in such an association.

Starting from scratch is not easy. Before you go into bankruptcy try to plan your next two years for the eventual return of your credit rating to a more normal range. It can be done, but it takes discipline. The whole point of bankruptcy is to remove the majority of your credit obligations and allow a fresh start. Know as much as you can about credit is the first place to start.

More How to Maintain Credit Cards During Bankruptcy Topics

Question by Angie: Can I keep a couple of credit cards when filing chapter 13 bankruptcy? I would like to keep 2 of my credit cards but don't know if they allow this under the chapter 13 laws. I know that when filing on your credit cards they close after you paid them off and I would at least like my Sams credit card and Providian to stay opened during this process and continue paying on these two normally. I am not sure if they will allow this. Any adivce? Best answer for Can I keep a couple of credit cards when filing chapter 13 bankruptcy?:

Answer by bearcat
As long as your payments are up to date on the cards, there won't be a problem.

Answer by Renee W
I don't think you can do that. When you file for bankruptcy, they take ALL debts under your SSN no matter if they are joint accounts. This happened to me when my sister declared bankruptcy. Her and I were joint account holders on a credit card, and when she filed for bankruptcy, even though I was the primary account holder, the account was still closed because she was a joint card holder and it was under her SSN too. So I seriously doubt that you can keep any accounts open after filing for bankruptcy.

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