You Need to Include All Your Debt When Filing Bankruptcy
Many people think that they are not required to include all of their debt when filing bankruptcy. They think that they’re able to not list and keep their favor credit cards and continue to use them after they file. This is why that does not work. Each creditor listed on your case receives a notice from the bankruptcy court. This notice includes a warning, called the automatic stay and not to try and collect a debt from the debtor without permission from the court. This is an important noticing that protects debtors from collection activity. Violators can be punished and forced to pay money damages. Credit cards are issued by major banking institutions. These banks do not want to be sued for violation of the automatic stay. When a bank locates a customer and a personal bankruptcy, the bank closes the account on its own, even though the bank was not listed in the case. Hiding a card from the bankruptcy court will not keep the card open.
Many people want to know if they can get credit after bankruptcy. Yes you can. However it really helps to have a plan. Remember, credit is frequently what got you into bankruptcy in the first place. Credit should be treated with the same care as fire. Under control, it is a great tool. Out of control, it is an instrument of destruction.
Once you file for bankruptcy, all your unsecured debts will be discharged. So shortly after the bankruptcy, order a credit report to be sure that the reporting agencies are showing that your old debts are zero, discharged in bankruptcy. Yes, the bankruptcy filing will be on your credit report for up to 10 years. But each passing year will lead to better and better credit scores for you. You can get credit after bankruptcy, but you must act responsibly.
