Help in Hard Times

Whether you’re struggling with bills you can’t pay or trying to recover from an accident, you need a hardworking team that cares about you and will get the job done. At Darrell Castle & Associates, our Memphis bankruptcy and personal injury attorneys are known for our compassion, hard work, and results. That’s what we do, and our clients love us for it.

We have a 5-star rating on Avvo, an A+ rating from the Better Business Bureau, and the Client Distinction Award from Martindale-Hubbell for client satisfaction. We’re here for you and for your case, and we show it every step of the way. There’s no reason today’s financial problems or physical pain should keep you from the life you’re meant to have tomorrow. Contact us today – the conversation is free.

Credit Cards and Bankruptcy: Everything You Need To Know

We understand at Darrell Castle and Associates, PLLC that credit cards are extremely convenient. However, their ease of use (and high-interest rates) make them susceptible to creating debt. When bankruptcy unfolds, you’re probably wondering what happens with these accounts.

Our experienced bankruptcy lawyers offer a quick guide to how filing for bankruptcy may impact your relationships with creditors

Whether companies that have issued you cards let you keep them is entirely their decision. Assuming you’ve continued to pay and do not carry a large balance, those in charge might allow your accounts to remain. However, the odds are greater that this will not be the case. Appealing unfavorable decisions can be challenging, as these are large companies with vast numbers of customers whose needs must be met. As someone who’s declared bankruptcy, you’re now a lower priority. 

In many states, filing for Chapter 7 requires listing all your creditors in the relief petition. It’s best to talk to a local bankruptcy attorney, such as Darrell Castle and Associates, PLLC, to see what your state requires. If a card doesn’t have any balance whatsoever, you can abstain from including it. Any card where you are in default or have failed to make minimum payments needs to be mentioned. Although you won’t have to pay them off, expect to have declared accounts terminated. Credit card companies regularly review credit reports from the major bureaus, so they’re bound to learn about your filing. Make a decision beforehand about which credit cards you can’t live without and pay them down before declaring bankruptcy. Though we understand this isn’t an easy step to take, it’s important to consider this before declaring bankruptcy. Considering long-term effects is important in any bankruptcy case. Talk to a bankruptcy lawyer at Darrell Castle and Associates, PLLC today for a free consultation. We’ll help you determine what steps you can take and whether bankruptcy is the best decision for you.

he good news is that you’re likely to continue receiving credit card offers after the bankruptcy process is finished. While your current credit card issuers might decide that you’re too much of a risk, others may see that you carry zero debt, thus spurring them to believe you’re safe to work with. Your credit is bound to be negatively impacted by declaring bankruptcy, yet opening a new credit card and responsibly paying it off will help build it back up.

Beware that the exorbitant rates that credit cards offer, combined with their ease of use, might be the reason you fell into trouble. Avoid repeating mistakes by sticking to a budget. Alternatively, consider using a prepaid card, where the user’s spending limit is determined by how much the customer has invested.

Declaring bankruptcy is sometimes necessary, but it often creates serious credit issues. Luckily, there’s a chance you will be able to keep your existing cards and an even better probability that you’ll have the opportunity to get new ones. Hire a bankruptcy lawyer at Darrell Castle and Associates, PLLC to discuss your options and keep your credit rolling.