BY: LISA R. WILSON

A life without credit cards. Ay-yi-yi. Sounds like a horror movie for most people. Luckily, if you do have to file for bankruptcy, you may be able to keep some of your credit cards. It depends on what your credit card balance is at the time of the bankruptcy, what the company issuing the credit card is willing to do, and how well you convince them you can, and will, pay present and future credit card debt.

Under federal law, bankruptcies remain on your consumer credit report for 7 years when you file Chapter 13 and for ten years when you file Chapters 7, 11, or 12. The bankruptcy will first appear on your credit report shortly after you file papers with the court, and even if you later change your mind, or the judge doesn’t grant the bankruptcy, that doesn’t erase the listing. If you want to hang on to some credit cards, you can try during the bankruptcy proceeding to negotiate what is known as “reaffirming the debt” with the credit card holder, meaning you convince them you’ll pay back what you owe. Or you can simply not list that creditor on your bankruptcy paper. If you discharged the credit card debt as a result of your bankruptcy, it may still be possible to get your card back if you voluntarily pay what was discharged.

There are other ways to keep credit cards or get new credit after bankruptcy. You can get a “secured” credit card through some banks by depositing money into an account as collateral, although the interest rate on these is usually high. You also might try getting one with a cosigner, offer some property as collateral, or agree to a very high rate of interest.

Having to file for bankruptcy is a serious matter, and it can be life-changing. However, contrary to popular belief, some financial perks such as the use of credit cards do not have to be completely stripped. For more information on bankruptcy, contact a LawInfo Lead Counsel Bankruptcy Attorney in your area today, to discuss the specifics of your bankruptcy case and if you are eligible to retain any of your credit cards.