Answering Questions About Credit Card Debt
Like many other types of debt, credit card debt is often misunderstood by those who have it. Credit card debts are the most common liabilities included in bankruptcy petitions, second only to medical debts. This kind of debt has a knack for quickly piling up without the debtor noticing. For this reason, it is crucial to understand how your future ability to use credit cards can be affected by a bankruptcy filing.
Before you make any major decisions regarding your credit cards in relation to bankruptcy, talk to an experienced Tennessee bankruptcy attorney at The Law Offices of Philip F. Counce who can answer your questions about credit cards. Here are some questions many of our clients have had regarding credit cards:
Does Bankruptcy Mean I Have To Give Up All My Credit Cards?
Not necessarily. If you have a card with a zero balance, you aren’t obligated to list it on your bankruptcy filing. The lender might become aware of your bankruptcy, but not necessarily. If this card is serviced by a different lender from any of your other cards, you might end up keeping it. We can help you determine if this is an option for you.
If I Get Another Card In The Future, Won’t It Have A High Interest Rate?
That’s entirely possible. New lenders will consider your bankruptcy filing and extend credit with what they see as reasonable restrictions. Keep in mind, though, that in your post-bankruptcy life, you’ll need to be a responsible user of credit. That means paying off your balances every month – so you won’t be subject to interest charges, even if the interest rate is uncomfortably high.
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We are a Title 11 Debt Relief Agency. We help people file for bankruptcy relief under the Bankruptcy Code. This ad does not create an attorney-client relationship until a written agreement is signed.