QUESTION
If I use this credit card how does it affect the bankruptcy and can the bank still allow me to use it even though I have listed them in my bankruptcy?
Asked on Mar 30th, 2016 on Bankruptcy - Oregon
More details to this question:
I have a credit card debt with a bank and I have listed them in my bankruptcy. When I go to my online account I still see the account listed and OPEN. I called them and it says I still have credit available. If I use this credit card how does it affect the bankruptcy and can the bank still allow me to use this card even though I have listed them in my bankruptcy?
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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If you filed chapter 13, you can't use the credit card - you should shred it and tell the bank to close your account. If you filed chapter 7, you will not have to pay the balance you owed on the card on the date you filed, but if you continue to use it, you'll have to pay all charges afterwards. Some banks let bankrupts keep a credit card because most bankrupts reform and the bank believes it will be a profitable account in the future.
Answered on Apr 28th, 2016 at 7:15 AM
Any credit you use after filing a Chapter 7 bankruptcy is not covered by the Chapter 7 discharge. You were not hoping to steal this money from the creditor, were you?
Answered on Apr 28th, 2016 at 1:29 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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The bank might for some strange reason permit you to use the credit card after filing bankruptcy, but it would be crazy irresponsible of them. My guess is that if you try to use the card it will be declined by the bank. In addition, you should not be incurring any additional unsecured debt once you file.
Answered on Apr 28th, 2016 at 1:29 AM
It is entirely up to the credit card issuer whether to allow you to continue to use the card. Just be aware that any charges you make after your bankruptcy filing date would NOT be discharged in the bankruptcy. Your continued use of the card might even constitute a reaffirmation of the existing balance, so proceed to make charges only after carefully reviewing all the card issuer's terms and conditions.
Answered on Apr 28th, 2016 at 1:28 AM
2 Awards
If you use the card after listing it in bankruptcy you will be liable for the amount charged.
Answered on Apr 28th, 2016 at 1:28 AM