Credit Card

March 22nd, 2008 by Questions

I was forced to declare Bankruptcy due to a single overwhelming debt. Obviously all of my creditors have to be involved and lose their money. I have a credit card for which I could easily handle the debt and to be honest would like to pay them. If I did not pay them I would feel like I was `stiffing them`. Is there any real advantage to paying them or is it just a waste of money now that I have filed?

When I am released in 9 months will this credit card company have any respect or consideration for me offering to pay them or will they treat my situation simply as a file and refuse to issue me credit at the end like all others?

I would like to come out of this at the end with some credit intact. Is that possible?


One Response to “Credit Card”

, A licensed trustee said:

You’ve raised a couple of issues…

First, you cannot simply choose to repay one of your credit cards, at least not during your bankruptcy procedure. If you do then the rest of your creditors have the right to expect to be repaid in full too.

Once you have been discharged (your bankruptcy is over) you may decide to repay any/all of your creditors – that’s a choice you have to make yourself. The benefit of bankrputcy is that you can no longer be “compelled” to repay your debts from a legal perspective.

The second issue you raise is really about re-establishing your credit. Unfortunately, it will take time. The higher your income the less time it will take, but the average person experiences 3 or 4 years of restricted access to unsecured credit after they have been discharged.

I suggest you have a conversation with your trustee just before your bankruptcy ends to discuss credit reporting and rebuilding after your discharge.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)