In a recent interview, leading bankruptcy attorney Bryan P. Keenan, founder of Bryan P. Keenan & Associates, PC in Pittsburgh, PA, discussed how to use Chapter 7 as an effective strategy when it comes to wiping out credit card debt. —
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When asked to comment, Keenan said, “A significant portion of my incoming clientele is unaware of certain things about getting rid of credit card debt before declaring bankruptcy. These are three things that people need to know before filing.”
The first and most important thing to know, according to Keenan, is that credit card debt is dischargeable after filing for bankruptcy. Chapter 7 is the most common type of bankruptcy filed when most of the debt has been accrued by credit cards.
“All unsecured debt - which includes credit cards, personal loans and medical bills - will be wiped clear after filing. This means that you no longer have any obligations on outstanding balances. This comes as a huge relief to people who have been constantly hassled by debt collectors,” Keenan said.
He added that credit card companies who continue to pursue collecting on past-due payments after filing for bankruptcy are violating the law and can be taken to bankruptcy court.
Another vital piece of information, Keenan says, is that people looking to declare bankruptcy should not use their credit cards after meeting with a bankruptcy attorney.
When asked to elaborate, Keenan commented, “Although the rule of thumb is to eliminate credit card debt, fraudulent activity will hamper the bankruptcy process. Fraudulent activity in this case means you used your credit card without the intention of paying the money back.”
Many people who file for bankruptcy are able to get credit cards again.
“After declaring bankruptcy and wiping your debt slate clean, you’ll have a better debt to income ratio, which will make you more appealing to credit card companies. Many of my clients have received credit card offers in the mail after filing,” he commented.
Keenan further added regulations that state people must wait eight years before declaring bankruptcy again provide guarantees to lenders and increase chances of qualifying for a credit card.
“Responsibly using a credit card for necessities such as filling the tank or paying bills is a great way to rebuild credit after filing for bankruptcy,” he said.
Name: Bryan Keenan
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Organization: Bryan P. Keenan & Associates
Address: 993 Greentree Rd #101, Pittsburgh, PA 15220, USA
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