For most people, credit cards are a common financial tool used every day. They help make purchases with ease, can create a sense of security with accessing our money and may even be able to boost our credit scores; for others, they can simply be their downfall. Although few bankruptcy cases are brought about solely through the mismanagement of funds, credit cards could certainly play an important role in your Chapter 7 case.
What To Know
Your credit card usage both before and after your bankruptcy case could impact your financial future. First, how you use your credit card in the months leading up to your case may be examined by the court. Making large purchases within 180 days prior to filing could be viewed as suspicious. On the other hand, making large payments to your credit accounts could influence your eligibility to file for bankruptcy.
Another concern people have is whether they will be able to keep their credit cards while in bankruptcy. There are no rules that say you cannot keep a credit card during bankruptcy, but there are some things to consider. Having a card after bankruptcy can allow you to get back on track with your credit by establishing a responsible payment history on the account. However, it is important to make sure your money management habits are in alignment before charging purchases to your newly resolved debt accounts.
Seeking bankruptcy help with your debts is a big step in your financial future. Be sure you have a Dallas bankruptcy lawyer review your prior credit card history prior to filing, as well as offer you guidance for moving forward in credit after your discharge.