When you file for bankruptcy, you most likely will have to stop using your credit cards.
If you have any credit card debt, the debt will be listed in the bankruptcy. When that happens, the card is discontinued so you don’t have a choice but to stop using it.
However, if you don’t have any credit card debt (which means no outstanding balance on your card at all), you are allowed to keep the card. You don’t have to tell the credit card company you’ve filed for bankruptcy; but if they find out some other way, they are allowed to discontinue that line of credit.
As bankruptcy attorneys in Memphis, we see that most people considering bankruptcy do have some credit card debt. But even for our clients who don’t, we typically recommend not getting further into debt. Discontinuing credit card use after you file bankruptcy is a good idea no matter what.
Don’t forget: You can always get a credit card again later. Filing bankruptcy doesn’t prevent you from using credit cards in the future.
Need to know more?
If you have any other questions about using credit cards before, during, or after bankruptcy, please contact us. We’d be glad to discuss your concerns at no charge.
You can also check out our free report on Life After Bankruptcy, which contains info about getting credit cards after bankruptcy, among other things.
(Photo by Sanja Gjenero)