Using Credit Cards In A Bankruptcy

Bankruptcy Attorney

Many people question whether they are able to use or obtain new credit cards when undergoing bankruptcy proceedings or make use of an existing card during the process. The answer to both questions is a resounding and an emphatic no.

The idea behind seeking bankruptcy protection is that your existing debt is wholly unmanageable and you need government assistance in dealing with creditors who are seeking repayment on outstanding loans. Incurring new debt while undergoing the bankruptcy process, defeats the entire purpose of the filing in the first place. In most, if not all filings, your old credit cards will be discharged anyway so the thought of using them will be moot anyway.

As for attempting to get new cards, most reputable credit card companies would refuse outright to issue any new cards fearing sanction from the bankruptcy court for violating the bankruptcy code by issuing a new card to a bankruptcy client. One has to consider that the entire idea behind filing for bankruptcy is to not only seek protection from creditors as we outlined above, but also to learn to live within our means and avoid as best as possible the creation of new debt in order to get a fresh start. Any new debt incurred during the process would be a complete undermining of the process as it is intended.

If your lifestyle requires you to constantly obtain credit to live as you are accustomed than maybe you need to take a very good look at the lifestyle rather than seeking new ways to fund it. Be sure to discuss your credit card use with your bankruptcy attorney. Dayton Ohio has a Rick West Bankruptcy Law Office that you can contact to get answers to your bankruptcy questions.

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