How Can I Keep a Credit Card

How Can I Keep a Credit Card

When you file for bankruptcy, you are required to list all your assets and creditors. You cannot pick and choose which creditors you want to continue to pay and which ones you want to discharge in your bankruptcy.

If you have a zero balance at the time of filing your case, the credit card does not need to be listed. However, your creditors will sometimes close the account even if you do not have a balance because the credit bureaus will notify them that you have filed for bankruptcy.

If keeping one credit line open is important to you, you might want to call the creditor directly and ask if they would close your account or leave it open if you had a zero balance at the time of filing your case.

Additionally, if you have paid any creditor over six hundred dollars, ninety days prior to filing your case that would also need to be listed. If one creditor is paid but not others, that is considered a preferential treatment of that creditor and the trustee could look to that creditor for payment. For example, if you paid one creditor three thousand dollars, ninety days prior to filing your case, the trustee could go after that one creditor for the three thousand dollars to collect and distribute to your other creditors.

The good news is that you can typically get credit very quickly post-filing or open a secured credit line to rebuild your credit. Since you will have more disposable income and no debt after filing, hopefully credit will only need to be used on a limited basis. When you pay your credit lines on time that will definitely help to rebound your credit after filing.

Can I Rent After Bankruptcy

Can I Rent After Bankruptcy

Many people ask whether they will be able to rent a home or apartment after filing for bankruptcy. The answer to that question is yes. It’s a common requirement to fill out an application with the property manager and have them run your credit history.

Within a short period of time after receiving your discharge your credit score should continue to improve if you are making timely payments to your obligations such as your car payment. You also have more disposable income after filing your bankruptcy case because you will be debt free. Landlords are more likely to have an issue with prior evictions than a bankruptcy filing.

A few things can help you during the application process to help assure the landlord you would not be at risk for default. If you have lived in your existing rental and have paid on time for at least a year that’s helpful. Even better if you can use your current landlord as reference. Additionally, if you have had a consistent job history with the same employer that is also helpful with no gaps of unemployment.

If you have a lower credit score you may be required to pay a higher security deposit or have a co-signor on the lease. Typically, rent does increase each year so keep that in mind when you begin to rent to make sure it’s affordable long term. Ask what items are included in the rent such as water, cable or trash or if that and additional cost. Having a roommate at least temporarily could help defray some of the cost as well.

Call Now Button