12 Feb Can I Use Credit While In Chapter 7 Bankruptcy?
In Chapter 7 bankruptcy you will receive many advertisements from companies offering to provide you with credit (credit cards, houses, cars, etc) as soon as you file your case. These companies charge high interest rates and want you as a customer.
Why do they want you as a customer? In most cases you have now wiped your debt to $0, so you have no more monthly obligations, and your income is the same as when they originally lent to you.
The bottom line is that you may start using credit immediately after filing a Chapter 7 bankruptcy. But, BE CAREFUL, it is generally not advisable to obtain credit immediately after bankruptcy. The advised approach is to live on a cash basis and balance a budget first.
Bankruptcy Law Network (BLN)
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