Many of people considering bankruptcy that meet with me at Halcomb Singler, LLP, ask whether they can leave a credit card out of their bankruptcy filing so that they can have a credit card to use after the bankruptcy is over.
Let me begin by saying that this is a valid question. Even making an appointment to speak with a bankruptcy attorney is a stressful and scary proposition to many of the people I meet with at my law firm. I encourage potential clients to ask me whatever questions they like and I will answer them all. I allot one hour for each appointment with a new client. I don't want to rush potential clients after they have taken the step to reach out for assistance with their debt problems.
With that being said, the short answer to the question of whether one credit card can be left out of a bankruptcy filing for use after the bankruptcy is no. Simply put, if you decide to file for bankruptcy each and every debt you owe on the date of the filing of the bankruptcy petition must be included. You must attest under oath that the petition lists each and every one of your debts.
But I'd like to talk further about this issue than just the quick "no" offered by the bankruptcy Court and discuss this issue further. I wonder why we as a society are so attached to credit cards? Why do we feel that we cannot operate without the safety net of credit cards? It is my hope that with the recent recession that people will cut credit cards out. This is especially true of those who file bankruptcy. Although it is true that bankruptcy should be avoided when possible, filing bankruptcy can be a blessing for those who need a fresh start. It is unwise to take that fresh start lightly. In my opinion those who have filed bankruptcy are in a great position to live the rest of their lives without debt. Why get off on the wrong foot again by using a credit card after bankruptcy?
Most tell me that they need the card to be able to rent a car or to stay in a hotel. I can attest personally that this is not true. I do not use credit cards and have both rented cars and stayed in hotels using my debit card. I recently went on a cruise and my debit card was used as my onboard credit card. The bottom line is that you don't need a credit card to do anything. You only need to use a credit card if you don't have enough money in your bank account to pay for what it is that you would like to do. If that is the case you can't afford it. The best way to make sure you take full advantage of all that bankruptcy can provide is to make sure that you build up savings and avoid credit after your bankruptcy has been discharged.
So if you find yourself in financial crisis this new year, bankruptcy may be able to help. Bankruptcy is not a magic wand that automatically fixes all debt problems. However, for many people, bankruptcy has given them the fresh start they need to lead successful financial futures. There are no dumb questions about bankruptcy. If you live in the central Indiana/Indianapolis area and are questioning whether bankruptcy can give you the fresh start you need please call me. I will sit down with you personally, go over your situation, and offer my opinion as to whether bankruptcy could help. There is no fee for this consultation and if you do decide you are going to proceed with bankruptcy Halcomb Singler offers flat fees and payment plans. If you would like to set up an initial consultation call our office at (317) 575-8222 or click here and we will contact you to set up an appointment. Happy New Year!
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
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