Can I Keep Credit Cards If File Bankruptcy ?
Filing for bankruptcy means declaring to the world that you cannot take any more financial obligations and also you are ion any position to meet with your current financial needs. The income that you earn is just enough to take care of your immediate family needs and there is no extra income that can take care of any form of spending. |
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Once you file for bankruptcy, the credit rating agencies are immediately alerted and it goes on your records or credit report. This is an essential process because the mortgage companies or financial institutions that you have taken a loan from will be intimated not to call you as you have filed for bankruptcy and they have top approach the court for payments.
f you already have credit cards and have not been delinquent on any of them, then the credit card company will not bother you or close your account. However, if you continue to spend on your card and do not pay the monthly amount you owe, you will get into problems and the account will be closed.
Also, there are other problems associated with it. In case you use your credit cards and the court realizes that you can afford to spend on your card and pay the monthly installments, then your bankruptcy status will go for a review. Your finances will be calculated and the bankruptcy filing may become invalid. It is a double edged sword because by then your credit report is damaged and you do not have the bankruptcy status anymore. Then the mortgage companies or companies that you owe money to will start calling you again.
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