Will I lose all my credit cards when I file bankruptcy?
All credit cards that have a balance must be listed in the bankruptcy. It is up to the individual lenders as to whether they will close your account. They may ask you to reaffirm the debt in order to keep a card open. This is not advisable. Reaffirming the debt means you will be liable for paying it and it cannot be discharged. The credit cards that do not get listed because they have a zero balance may stay open for a period of time because the lender will not receive notice of the bankruptcy. However, creditors pull credit reports periodically and once they see the bankruptcy, they may close your account (again, this is up to them). It is scary to think about not having credit cards when you have relied on them during some tough financial situations. However, once those debts are gone, you will feel relief and can start over. The monthly payments will be gone. Hopefully that can allow you the budget space to live “cash only” until your credit is rebuilt. There are also secured credit cards that you may be able to obtain for those emergency situations.
Will I get new credit cards after bankruptcy?
Almost as soon as you file bankruptcy, you will get credit card applications and auto loan applications. The interest rates may be higher than what you were use to before you filed bankruptcy. However, the only way to build credit is to establish more credit. You can also rebuild your credit with secured credit cards where you put your own money on the card.
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