Many individuals in North Carolina and across the country fear the thought of filing for bankruptcy because of how it may impact their lives. Some may wonder how a bankruptcy filing will affect the ability to have credit cards and whether or not they’ll be able to use these credit accounts to rebuild their credit post-bankruptcy.
Personal credit cards
In most cases, you cannot have a personal credit card during the process of a bankruptcy. In order to discharge credit card debts, you will need to report each of your credit accounts in your bankruptcy filing. Creditors will learn of the bankruptcy and, in most cases, will prevent you from using their services. This is to prevent you from accumulating more credit card debt.
Business credit cards
You may work for a company that requires you to have a company credit card. You do not have to worry though, as you do not report this credit card unless you are responsible for the balance. Be sure to speak with your employer after filing for bankruptcy if you are in charge of any of the balances. There are alternatives to work out with your employer, however, including:
- New credit cards without responsibility
- Debit cards rather than credit cards
- Reimbursements to your own bank account
What to do
Just because you declare bankruptcy does not mean that your world is over. Soon after you file for bankruptcy, you can begin applications for new credit cards or loans. This can rebuild your credit if you choose to do so. Some financial institutions look for individuals in these special circumstances to help them get back on their feet while avoiding extensive credit card debt.
If you are under overwhelming financial stress, you may want to consider bankruptcy. Contact an attorney who you can trust to discuss your options. He or she can help you in the filing process for your bankruptcy claim. They can also help you determine the right steps to take with your employer and with your credit card companies.