North Carolina Credit Card and Bankruptcy

By: EconomyWatch Content Team   Date: 1 February 2010

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In the past two years, the number of people who have filed bankruptcy in the United States is staggering, even though laws now in effect make this process more challenging.  Let us say someone with a North Carolina credit card lost a job and after doing everything possible to hang in there, a decision was made to file bankruptcy.  In a scenario such as this, people often want to know if they can keep one or two of their favorite or even good-standing credit cards out of the proceedings.

The answer to this is unfortunately, no.  When someone like this was to file for bankruptcy, every North Carolina credit card would have to be listed.  By law, people have to list all debt, which means even debt on a credit card in good standing.  While it would be nice if one or two cards that have no late payments or over limits could be held out but the system is simply not set up this way.

Because all debt is included in a bankruptcy, even the good accounts for a North Carolina credit card, people worry that they will never be able to secure credit again and that their credit score will forever be ruined.  While the bankruptcy will remain on the person’s credit report for 11 years, which is a negative reflection to creditors, the truth is that once this process is over, securing a new North Carolina credit union is easier than most people think.

In fact, securing a new North Carolina credit card after bankruptcy can be done extremely fast.  The reason is that the new credit card companies, banks, and credit unions know this person’s debt was completely wiped out, which means the chance of payments being made on time for the new card are good.  Therefore, the issuing company of the new North Carolina credit union takes very little risk and for the consumer, it allows them to start over again, rebuilding credit.

Typically what happens after bankruptcy is the person will begin to receive unsolicited offers, whether via email or by regular mail.  Although some of the offers would be considered good and legitimate, some should be avoided.  This becomes a little tricky in that after a person files for bankruptcy, most are bombarded with so many offers that several accounts could be opened.  When this happens, the person can find him/herself back in the same trap that caused the bankruptcy situation.

There is certainly nothing wrong with applying for and securing a new North Carolina credit card but now more than ever, the individual who filed bankruptcy should take time to compare the different offers and then choose the one with the best terms.  Unfortunately, many people in this position believe they will only have one or two chances of getting a card so they fill out the first application received.  In this case, the card might be secured, which means the individual would have to deposit money, which becomes the available credit line or they discover the card has extremely high fees and interest rate.

It is important for anyone who files bankruptcy to take their time and consider all their options for North Carolina credit card.  That way, they are not locking themselves into a card that has high potential for getting them into financial trouble again.  On the other hand, with the right card and proper handling, the card could be used to rebuild credit after bankruptcy.


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