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Can I Keep One Of My Credit Cards If I File For Bankruptcy?

No, you aren’t able to do that. All unsecured debts (like credit cards, medical bills, payday loans) must be included in a bankruptcy. In fact, not disclosing these debts could be considered fraudulent (because the court may view such an act as unfair to your other creditors who have been properly included).

When you file a St. Louis Chapter 7 bankruptcy, all unsecured debts will be discharged. But the opportunity to get a new credit card will be available very soon after the discharge is ordered by the court. Once this discharge occurs, you will be flooded with credit card applications. And the reason for this barrage of applications that you will receive is simple: All of your debts will have been knocked out, so on paper, you will look like the most attractive candidate in the world (because you will presumably be able to make monthly minimum payments to the creditor with relative ease). This in turn will raise your credit score over time.

Of course, I’m not suggesting you would run right out and get a bunch of credit cards after you get a discharge in bankruptcy (from debts that probably included a great deal of existing credit card debt!!) You may never want to do that again in your life! But the opportunity will certainly be there.

In a St. Louis Chapter 13 bankruptcy, the situation is a little different. All unsecured debts must still be included. But you will not be able to take out any new cards while you are in the Chapter 13 plan. The plan will last between three to five years, and during that time, certain debts will be paid back. But as soon as your Chapter 13 is finished, you will be able to take out as many credit cards as you wish.

Filing for bankruptcy can be a process that is filled with questions. Hiring the correct lawyer to answer all your questions is crucial. The St. Louis bankruptcy lawyers at Brinkman & Alter, LLC are prepared to assist and guide you through the process, and get you the fresh start / clean slate that you deserve.