It seems that most Americans rely on their credit cards on a regular basis and people would find it very difficult to do their day to day operations without one.  One of the questions I hear all the time is once I file for bankruptcy will I ever be able to get a credit card again?   The answer to that question is absolutely yes.

A bankruptcy will be listed on your credit report for ten years but that doesn’t mean your credit score will be poor during that time.  More likely than not your credit score will actually INCREASE approximately 12 months after your bankruptcy case is over.

As for a credit card, debtors are usually offered credit cards approximately three to six months after their bankruptcy has been discharged.  However, debtors should be weary because these credit cards tend to have significantly high interest rates (20-30%).   Furthermore if a debtor again gets into trouble with these credit cards and cannot pay them, then they will not be able to file for bankruptcy again for another eight years.    By obtaining a credit card post bankruptcy the debtor will likely help increase his or her credit score on a faster basis as the credit card companies will report that the debtor is paying the debts.

An alternative for a standard credit card is to obtain a secured credit card.  A secured credit card is similar to a debt card because you pay in advance and then are able to use the card.  Example,  you sign up with Orchard Bank for one of their secured credit cards.  You pay in advance for the card for the amount you want to use ($500.00).  You then use the card and pay on it with the $500 you put down.  Every time you pay on the card the bank will report you to the credit bureaus.

If you are thinking about filing for bankruptcy and would like to discuss the consequences of doing so please contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.  We offer free consultations in our offices located in Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.