When you pursue bankruptcy, you are required to list all of your creditors and all of your debt. This includes debt that you may be current on. For example, you have a credit card that you have been current on and you have routinely paid the balance down, so you would like to keep the card after the bankruptcy. However, when we exclude a card or a debt, we are showing preferential treatment that the other creditors are not receiving. When we file a bankruptcy, we are telling the court that all creditors and debt have been listed.
In addition to that, even if a creditor is not listed, they will still most likely be notified of the bankruptcy through a credit report. For example, if you forget about a credit card that you opened a long time ago, the creditor will still most likely be made aware of the bankruptcy. The creditor will then likely close the account.
It can be a very scary thing to think about not having a credit card after filing for bankruptcy, but with our firm, we offer a free credit repair program that will help walk you through the steps on building your credit and opening cards that will help you achieve that goal. Bankruptcy is the time to start fresh and get rid of all of that old debt.
Of course, everyone’s circumstance is different, so if you have any questions, please don’t hesitate to reach out for a free consultation. We are available to go over your options and help you through this process. Visit www.lifebacklaw.com to speak with an attorney!