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Can I use credit cards during bankruptcy?

Many people decide to file for bankruptcy in order to get a fresh start from their debts. When they are in the process of paying off their debts; however, they may want to have credit cards as an extra form of financial security.

Having credit cards is convenient, and it can feel like it eases the pressure when it comes to sticking to a monthly budget. However, credit cards are, in legal terms, a type of debt. Therefore, they should be minimized, not maximized, during bankruptcy.

Credit cards and bankruptcy

In simple terms, there is never a time during bankruptcy when you can use credit cards to acquire more debt. In the eyes of the bankruptcy court, the debt that you owe to a credit card company is exactly the same as any other type of debt; therefore, you have the duty to start paying it off.

Even if you have a credit card that you do not owe any money to, you still need to list this company as one of your creditors as part of your bankruptcy filing. You may have the possibility of having some of these debts discharged; however, in order to have any chance of this, you must first of all list them in your bankruptcy paperwork.

When you file for bankruptcy, any loans that you have, whether it's a family loan or a bank loan, is viewed the same. If you are considering bankruptcy, it is important to look into the different Chapters and the advantages as well as disadvantages that they have.

Source: The Balance, "Can You Keep Some Credit Cards If You File Bankruptcy?," accessed Feb. 16, 2018

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