When Escondido residents look into the possibility of filing for bankruptcy, there may be more questions than answers at first. Chapter 7 bankruptcy, in particular, may inspire many different questions, as it is commonly known as "liquidation" bankruptcy. Questions can include the following: Will I lose my home? Do all of my debts qualify for discharge? Will I lose all of my credit cards if I file for bankruptcy?
Not all of the questions that can pop up when investigating the pros and cons of bankruptcy are easily answered. However, the issue of whether your credit cards will still be around after a bankruptcy is, in fact, pretty clear: you will not be able to keep your credit cards.
However, while that may seem like a negative aspect to filing for bankruptcy, losing credit cards can actually be a positive thing. After all, for many Escondido residents who are contemplating a move toward filing for bankruptcy, credit card use may have been one of the problems that led to an overly burdensome debt balance to begin with. A personal bankruptcy will discharge debt, but from there it is incumbent on the filer to change the way finances are handled going forward. It can be positive to learn to live without credit cards.
But, not to fear. After some time has passed from the bankruptcy case, Escondido residents should be able to begin to rebuild their credit. This can occur through the use of secured credit cards: cards that are used against a cash deposit that is made by the cardholder. And, in time, the filer may be able to get a regular credit card once again.
Source: FindLaw, "Pros and Cons of Declaring Bankruptcy under Chapter 7," Accessed Aug. 14, 2016