Lake Villa Bankruptcy Attorney Clarifies That All Creditors Must Be ...

Lake Villa bankruptcy attorney states that pursuant to the Bankruptcy Code, you must list all of the people that you owe money to on your bankruptcy petition.  This does not mean that you can’t agree to repay someone after your case is filed.  For example, some people have a particular doctor or dentist that they owe money to but they don’t want to list on their schedules.  The federal law says you must list those individuals, however, you can voluntarily agree to repay whoever you want. 

The problem comes where someone wants to keep a credit card after the bankruptcy cases filed and they simply do not list it.  What I tell my clients is this: you are typically going to lose all of your credit cards when you file for bankruptcy.  Even if you have a credit card that has no debt on it, so it typically doesn’t have to be listed on your bankruptcy because you don’t owe any money, that creditor is likely going to send you a letter terminating your charging privileges anyway.  Thus, don’t plan on keeping a credit card after your bankruptcy case is filed.  In some circumstances, you might be able to work a deal with a creditor where you reaffirm a dead or agree to keep the credit, but typically, plan on getting a complete fresh start.  We are not going to be able to keep a credit card after filing bankruptcy. 

You will get offers for credit after your bankruptcy case is filed and typically from credit card companies as well.  Be aware, however, that these might contain annual fees and high interest rates so I advise my clients not to do any kind of credit card shortly after a bankruptcy filing.  The longer you can wait between bankruptcy filing and seeking credit, the better deal you are going to get from the credit lender.