subject: Chandler Bankruptcy Tips - Can I Keep My Credit Card in Bankruptcy? [print this page] Chandler Bankruptcy Tips - Can I Keep My Credit Card in Bankruptcy?
You know, when you're filing bankruptcy, you have an obligation that's enforced by the bankruptcy court to list every single creditor.
Now, if you have a balance on that credit card, that balance will be discharged. However, the credit card will also go away. And for a lot of people, that's a scary place to be. They don't really want to let go of, say, that one trusty credit card that they use for those unexpected gas trips and emergency this or that. And that really worries them.
And I get a lot of questions about can I keep this card or can it keep that card? You can keep the card. The question is is it a good idea to keep the card.
And the reason I present it that way is because more often than not the credit card company is not going to give you a good interest rate. Now that you are someone who has filed someone against their company, they're more likely to give you a 28-30% interest rate card. It's not the same card that you had before you filed bankruptcy.
So you can always keep the card, but be financially savvy about it. Because remember, this month we're making resolutions to get out of debt. And you want to get the best terms you can when you're loaning money on a credit card.
And so you'll more likely want to start out with a secured credit card that has just your money on the card that you charge against and pay every month. And once you've done that for a couple of months, then you can acquire an unsecured credit card that will have a low interest rate but also a low balance.
And that's really where you should go. But if you're adamant that you want to keep your credit card in your bankruptcy, you can. But just bear in mind you're going to take a lot of risk when you're using that card because it's going to have a very high interest rate.
