Should I file bankruptcy for defaulted credit cards? Will my current credit cards be affected by this action?

Question

I cannot afford to pay these old debts. What's the best and worst thing that can happen at this point...?

Answer 1

yes and yes and the worst thing you will have a bankruptcy on your record for 10- years!!!

Answer 2

Read carefully the cardmember agreements that you have with your current credit cards. Most of the companies, though there are now a couple of exceptions, will assign you the "default" rate on the account if the find that your credit has taken a turn for the worse. It doesn't matter if you're current with the ones that you're not filing against, they have the right to assign the higher rates based on the higher risk.

Look for the phrases "at any time, for any reason" or "deemed a higher credit risk" or "your standing with other creditors". These are some of the triggers that they will increase your rate or lower your limit based on what happens on your credit file with other financial institutions.

Answer 3

Yes, any debts you have will be affected by a bankruptcy and you'll emerge with all your credit cards cancelled, so be aware of that when you file, because you have to list ALL debts and assets, you don't get to pick and choose which gets affected and which doesn't. It's all or nothing.

Full disclosure is REQUIRED by bankruptcy law, it is a very bad idea to take someone's advice to "omit" a debt deliberately.

Answer 4

as long as you continue to pay obligations you may omitt them ffom a bankruptcy, keep them current and do not go late to help in rebuilding your credit, same thing with a car you can reaffirm the debt with the lender if you have been making proper payments and dont have much equity in the car. if you can not pay off defaulted cards and want to clean your act up seek the services of a good bankruptcy attorney the law has changed recently and it is harder to fill than a year ago. once you list a item in the bk you cannot make any payments on it without upsetting the apple cart. talk with an attorney gl

Answer 5

Some credit card companies run your credit every month (Capital One does) A lot of companies also have a clause that if your credit score drops below a certain point, you automatically start paying the highest interest rate (the "default" rate)

Answer 6

If you file bankruptcy=

The only best thing that will happen will be to the other credit card company's.

They will make a "killing" off of the new rates they are going to charge you. You will be stuck for seven years.

Answer 7

ok, so from what i understand you hvae some old bills that you cant afford to pay - probably because they are in collections and they want all there money,but you have other cards that you are useing and paying on that you want to keep.
Yes, this can be done !
you do not have to include anything in the bankrupsy that you dont want to,but they do suggest you put everything in to make a clean slate for yourself.
I dont know how many credit cards your talking about or what you owe etc, but have you thought about contacting the companies and working out a settlement with them ?
you can usually settle for 1/2 of your total bill and when they get the payment the consider it payed in full..

Answer 8

Find a good credit counseling agency. These are non-profit agencies that can help negotiate with your credit cards to lower your interest rates and consolidate all your cards into one lower payment. It may take several years, but you can get out of debt this way without ruining your credit. I went through Consolidated Credit Counseling. It took me 5 years, but I paid off all my debt. Now I own a house and a car.

Answer 9

if you file bankruptcy you loss all your credit cards they can not exclude any