Bankruptcy Law, Credit Score

When Can I Apply for a Credit Card after Bankruptcy?

The type of bankruptcy can affect how soon someone can apply for a credit card after bankruptcy. A Chapter 7 bankruptcy case allows the consumer’s debts to be discharged fairly quickly, within a few months, after non-exempt assets are liquidated and used to pay off the filer’s debts.

A Chapter 13 bankruptcy case takes longer than a Chapter 7 case since it involves a three-to-five-year long repayment plan where the consumer works with the bankruptcy trustee on paying down qualifying debts while discharging what is left at the end of the repayment period.

Applying for a new credit card is not permitted without court approval so long as the bankruptcy proceedings are ongoing. This means the case must be closed and a bankruptcy discharge issued.

For a certain period of time, the bankruptcy filer will only be eligible for specific types of cards, namely secured credit cards. While it may seem counterintuitive to utilize a credit card after discharging unsecured debts, one of the best methods for rebuilding credit is to responsibly use a secured credit card.

With a secured card, the credit limit the cardholder receives is equal to the amount of security deposit he or she is able to put up. This limit keeps the spending on the card in check while allowing the individual to rebuild his or her credit score.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at

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