Bankruptcy provisions in Kentucky law exist to provide people who are struggling to pay their debts a fresh financial start. However, many people considering bankruptcy have concerns about the effect it may have on their future access to credit.
Filing for bankruptcy may make obtaining a credit card more difficult, but you still have options.
How Does Bankruptcy Affect the Credit Cards You Already Have?
Most people choose to include their credit cards in the debts they want to have discharged through bankruptcy. However, most credit card companies will permit you to keep your card if you reaffirm the debt and sign a new agreement. If you decide to go this route, the court will not discharge the balance you owe on your credit card.
How Does Bankruptcy Affect Your Ability to Obtain a New Credit Card?
It will probably be difficult for you to obtain a new credit card after you complete your bankruptcy proceedings. However, if you have a creditworthy co-signer, you may qualify. Additionally, you may be able to obtain a secured credit card by putting down a cash deposit. If you pay your bills on time for at least six months, you may then be able to qualify for a traditional credit card on your own. Alternatively, you can use a debit card for online purchases and other transactions.
Filing for bankruptcy may impact your ability to access future credit. However, the economic relief it provides often makes this hardship worthwhile. With careful financial planning, you can rebuild your credit after bankruptcy.