Can I Use My Credit Cards When I Am in Bankruptcy?
You do not want to use your credit cards when you are in bankruptcy. If you have used your credit cards within the 90 days prior to filing for bankruptcy this significantly increases the chance that your creditors will object to discharge. If their objection is successful, that debt will not be eliminated in bankruptcy.
When you file for bankruptcy you are required to list all your liabilities and everyone you owe money to. Your credit card companies will receive notice of your bankruptcy filing, and it is likely they will close all your credit cards. Even if you have a credit card which is not closed, do not use it. When you are in bankruptcy you need the Bankruptcy Court’s permission to borrow money.
If you apply for a new credit card while you are in bankruptcy you would likely not be approved. Note however once you have received your discharge your mailbox will be filled with credit card applications. At that point you can apply for a credit card but be careful because if the balance gets out of control it will be a number of years before you could eliminate it in bankruptcy.
The above information is a general overview and is not intended to be used as legal advice. If you are considering changing your bankruptcy attorney, the best thing to do is call our office at 248-557-3645 and schedule a free consultation so you can receive advice which is tailored to your specific circumstances.
By: Michael Benkstein, Esq.
Managing Attorney, Bankruptcy Department
The Law Offices of Joumana Kayrouz, PLLC
1000 Town Center
Southfield, MI 48075