Difficult times require radical decisions. The declaration of bankruptcy is one of such decisions. Is it more reasonable to declare bankruptcy or try to get back on track and to pay off debts? Should you just give up after all? What consequences to expect in either case?
Credit cards help many people when there are in a hole. They help to sustain business in times of troubles, but it happens that an entrepreneur is forced to declare bankruptcy. They are unable to pay off their debts.
Many people wonder if they can obtain credit as bankrupt. Maybe they have a credit card they use to travel. Perhaps the card is used for everyday purchases and is fully paid at the end of each month. Maybe it's a zero-balance card. Unfortunately, in all these cases, the answer is the same: no, you cannot keep a credit card after going through bankruptcy. There are two reasons for this. First, the debtor is obliged to list all debts in bankruptcy and confirm it under the threat of punishment for perjury.
Debt cancellation in bankruptcy, enforced by the court, voids the balance on the credit card. As long as this is theoretically possible, no best unsecured credit cards after bankruptcy lender has ever given a new loan on the same account once the balance was canceled in bankruptcy.
Then, it is logical to ask the following question: what happens to the best credit cards after bankruptcy without balance? It can be assumed that technically they are not “debts” and therefore, it should not be listed in the bankruptcy. However, banks and another credit card of financial companies are also the biggest customers of credit agencies and therefore receive reports of their customers' bankruptcies almost immediately. After receiving bankruptcy information from the credit agency, the bank deactivates the account even if it is not listed in the bankruptcy, and this is a common practice.
What happens when the debtor is a co-owner of best credit cards after bankruptcy discharge with another legal body, such as a wife who does not declare bankruptcy? In such a case, a lot depends on who created the debt on the card, who was a responsible cardholder, etc. Can the bank close the card, if the responsible owner does not declare bankruptcy? Maybe the bank will close the card only for the debtor, but will it keep for the responsible owner? There are different options, but it all depends on the circumstances, and, as always, the final decision belongs to the Bankruptcy Court.
What is the bankruptcy of an individual?
The bankruptcy of an individual is when a person cannot repay a debt, or is unable to pay regular payments (for example, on loan), as a result of which he can be declared financially insolvent by an arbitration court.
What does bankruptcy give to an individual?
The bankruptcy law makes it possible for an individual to completely write off the debts which he is unable to pay off.
After completing all required actions and publication of arbitration court about the end of sales of property and the recognition of a citizen bankrupt, no creditor has the right to demand repayment of debt: it is deducted even if not paid in full.
However, this does not mean that this law allows you to get rid of all your loans easily.
The bankruptcy proceedings have serious consequences.
What does bankruptcy give to creditors?
As a result of bankruptcy proceedings of the debtor, lenders can theoretically partially return their money or other property given in debt. A great advantage is that creditors do not need to knock out the debt themselves or sell it cheaply to collectors. The court undertakes this task by introducing certain procedures in respect of the debtor. The downside is that the vast majority of debtors have nothing to their heart, and they have to write off everything.
Debt restructuring
Restructuring is an attempt to restore the solvency of an individual. The stage at which it is still possible to avoid bankruptcy, and it is likely to repay debts to creditors. It is assumed that the latter establishes a more loyal debt repayment regime, and the citizen pays the debts depending on the level of his income in accordance with the plan approved by the arbitration court.
Is it possible not to pay the loan
The legislation is loyal to debtors and does not select the only housing, clothing, household items, pets, and premises where they are kept.
However, you won't be able to take loans and declare bankruptcy. Any transactions at the best credit cards for rebuilding credit after bankruptcy may be challenged in order to prevent the illegal transfer of property to third parties.
Bankruptcy imposes certain restrictions on the citizen. Individuals who are bankrupt for three years cannot hold senior positions, and restrictions are imposed on them to carry out business activities and travel outside the country. The citizens cannot open bank accounts and receive income from them. When applying for a loan, the bankrupt is obliged to notify the bank of its status for five years.
How do the creditors approach the bankrupts?
Is it possible to take the best credit cards for after bankruptcy of an individual, if we are talking about a bank loan? It should be understood that the bankrupt is not the last one to whom the bank agrees to provide a loan. Those who have not yet paid off their former debts have a poor reputation. That makes it quite natural that the bankrupt is incapable of covering the debt.
And it always helps to improve the reputation of the borrower. Therefore, the desire of the bankrupt to issue a loan is not impossible. It would be a mistake to assume that you can take a loan only at extortionate interest or that the bankrupt client is interesting only to fraudsters. After all, even large, respectable banks need sources of income.
