The decision of whether or not you can keep any of your credit cards after you file bankruptcy is up to your credit card provider. Most credit card companies base their decision to retain your account on three main factors: what your balance is at the time you file bankruptcy, your payment history, and your willingness and ability to pay your current and future debt. Generally, if you have a balance on a credit card at the time you file bankruptcy, most companies will allow you to retain your credit card if you sign a reaffirmation agreement whereby you agree to resume payment on the card under the same terms prior to the bankruptcy filing. Reaffirmation agreements must be approved by the bankruptcy court to ensure that all terms in the agreement are fair to the debtor. If you don’t owe money on a credit card at the time of filing, you don’t have to give the credit card company notice of your bankruptcy and as a result, your account may remain unaffected. However, under federal law, bankruptcies go on your credit report for 10 years when you file a Chapter 7, 11, or 12 bankruptcy and seven years when you file Chapter 13. This can affect your ability to receive credit in the future as it’s well within the rights of credit card companies to consider your financial history in your credit report when making their decision to grant you an account. It’s not impossible, however, to gain new credit after filing bankruptcy, though most will be offered at a higher interest rate and will be limited in amount. If you do decide to keep or apply for new credit after filing bankruptcy, always consider the extent in which easy access to credit cards can lead to an unmanageable debt. You can help rebuild your credit after a bankruptcy by using your credit cards cautiously and by paying on time.
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