Filing for bankruptcy can be the most stressful time in a person’s life. The embarrassment of losing control of your debt, not knowing what will happen to priceless heirlooms, and wondering how you’ll afford the life you’re used to is almost as bad as having bills piling, as a lawyer like a bankruptcy lawyer Meriden, CT from a law firm like CT Bankruptcy Attorneys, can explain. . Most people keep credit cards in case of emergencies. But what will happen to yours?
Cards With Zero Debt
Remember that store card you opened and never used? The law still requires that you include it in your bankruptcy papers. And if you think you’ll be able to keep that card, you may find it canceled despite not owning a dime. Even if they’re never informed about your bankruptcy proceedings, most creditors check national lists of bankruptcy filings, looking for customer names.
Bankruptcy is kind of like wiping the slate clean. You discharge your debt so that you can start on the right path to better financial stability. This means that when it comes time to list your debt, it’s a good idea to include all of your credit cards to discharge any remaining balance, even cards with a low balance. You do have the option to reaffirm your debt and keep your credit card, but this isn’t always recommended, as you’ll continue carrying around you might be unable to pay
Many companies hand out company cards for their employees to use for travel and other expenses, but it’s not always easy to know if it needs to be included on your list of debts. The employer may get the statements and pay off what you used, or you may be personally liable for all payments and get reimbursements from your employer. While talking to your employer about your bankruptcy proceedings can be difficult, your company’s HR department can clear up a lot of confusion. And remember: it’s against the law for your employer to discriminate against you for filing for bankruptcy.
While it’s not always a wise choice to get a credit card so soon after you’ve filed, having one can help reestablish your credit quickly. The types of credit available to you will likely be with secured credit, where you give the card company a security deposit that will refund you the money after you’ve shown a good history of repaying your debt to them. Otherwise, expect offers for high interest, low credit limit cards.
If you feel overwhelmed by your bankruptcy proceedings, there is help out there. Talk to a bankruptcy lawyer today to get the guidance you need.