Many people in Concord, Antioch, Brentwood, Richmond, and Pinole have been forced to consider chapter 7 bankruptcy. Most chapter 7 bankruptcies are filed to eliminate credit card bills, medical bills, and often lawsuits. Some people are eager to say “good riddance to bad rubbish” when it comes to credit cards, others like to have at least one credit card after bankruptcy for emergencies or for making reservations or purchases online. Many people wrongly say, “I will not put that card in bankruptcy so that I can keep it.” This notion may seem like common sense; however, in the law it’s wrong. The law requires disclosure of all debts, not just those to be forgiven. Why? The judge is entitled to know everything before deciding whether or not to forgive your debts. The corollary is also true: you do not need to list accounts with a zero balance. Meaning if an account has a small balance, for example $150, which can be paid before bankruptcy, then the account is not listed in bankruptcy. Unfortunately, paying the bill before bankruptcy is not a sure-fire way to keep the card because a credit card company is free to close an account for any reason or no reason. Often credit cards without a balance are closed shortly after bankruptcy as a result of “economic circumstances” or a “decline in credit rating.” So what’s a person to do?
In Contra Costa County having a credit card is helpful for many day to day activities. Having a credit card after bankruptcy can also help a person begin to build good credit. So, what should a person in Richmond, Antioch, or Hercules do to get a credit card after bankrupty? Most people are surprised to learn they will be pre-approved for new credit cards within 90 days of filing chapter 7. These pre-approvals will be for low-limit (usually $300 to $500 limit) credit cards. Nevertheless, this kind of card can be used for convenience as well as rebuilding credit.
At the Law Office of Michael Primus, we have helped hundreds of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa County and have debt problems, contact us for a free consultation.
Call now for a free in office consultation regarding bankruptcy. Offices in Walnut Creek, Antioch and Hercules.