Filing Personal Bankruptcy Help

A financial fresh start by wiping out debts for an honest debtor filing bankruptcy is the goal of the bankruptcy law.

Why then, would someone want to keep a credit card even though they are filing bankruptcy?

To me, it appears the answer is simple: Emergencies. Many people are afraid that if they don’t have access to a credit card, they won’t have funds for an emergency. This brings to mind my freshman year of college. As an 18 year old, I was taken in by that free t-shirt! I did ask my parents if I should get a credit card. Their answer, “It’s a good idea to have one for emergencies”. The only thing wrong with this statement, I found that I found myself in a lot more situations I felt qualified as “emergencies”, where I would use that dependable credit card.

While my “emergencies” may not have qualified, there is no question there are real emergencies in life, and it is always good to have a backup plan to get you through those dilemmas. However, wouldn’t it be satisfying, if, instead of relying on that credit card to bail you out, to be able to do it yourself? This is returns us to the financial fresh start intended by the bankruptcy law. Once you have liberated yourself from the burden of your debts, you can concentrate on building your savings. After filing bankruptcy, take that $100/month you were devoting to credit card payments and pay it to your savings account instead. Now you can apply yourself to rebuilding your credit without the worry of getting caught in the same trap.

With a little consistency, you will have a nice emergency fund built up in no time. Refrigerator acting up? No need for a credit card. Need to fly across the country to visit your sister after an accident? Now you can make that trip with your emergency fund, and not be still be paying for that plane flight and the interest accrued on it a year from now.

Filing bankruptcy requires that the Debtor list all of his or her creditors in the bankruptcy petition. This is something I advise all of my clients to do, and that everyone who files for Chapter 7 or Chapter 13 declares under penalty of perjury has been done. I’m not as naive as I was in college, so I know that not all of my clients listen to my advice and adhere to it.

I am well aware of clients who have attempted to keep one of their credit cards off of their bankruptcy with the goal of continuing to use it. Unfortunately, your creditors can still find out about your bankruptcy filing if you do not list them on your petition. Credit card company subscribe to a notification service that will deactivate accounts of customers who file bankruptcy. Once this happens, they are left with no credit card, and they have failed to disclose the debt in their bankruptcy, as required by law.

Why not free yourself from that ball and chain and take control of your financial life by saying “goodbye” to the idea that you need a credit card to help you out of a jam and, instead, rely on the emergency fund that YOU created!

Looking to find the more information on bankruptcy? Then visit www.khuntergoffpa.com to find the best bankruptcy lawyer for you.

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