Under the new bankruptcy law, one can only file Chapter 7 bankruptcy once every 8 years. Before the new law, that number was 6 years. So, those who will obtain a bankruptcy discharge under the new law are now subject to MORE solicitation by the credit card companies.

Why? Well, now that you have recently gotten a discharge, the credit card companies know that you can’t file another Chapter 7 bankruptcy for 8 years. They have 2 more years of profits they can make off of you! It’s tragic.

This New York Times article published today tells the story well: Credit Card Offers Stacking up at Homes of the Newly Bankrupt

“As one of more than two million Americans who rushed to a courthouse this year to file for bankruptcy before a tough new law took effect, Laura Fogle is glad for her chance at a fresh start. A nurse and single mother of two, she blames her use of credit cards after cancer surgery for falling into deep debt.

Ms. Fogle is broke, and may not seem to be the kind of person to whom banks would want to offer credit cards. But she said she had no sooner filed for bankruptcy, and sworn off plastic, than she was hit with a flurry of solicitations from major banks.

“Every day, I get at least two or three new credit card offers – Citibank, MasterCard, you name it – they want to give me a credit card, at pretty high interest rates,” said Ms. Fogle, who is 41 and lives here. “I’ve got a stack of these things on my table. It’s tempting, but I’ve sworn them off.”"

The moral of the story is: It is important to learn to develop good credit habits after bankruptcy. It’s difficult to do that when you have all those credit card offers staring you in the face. Many of the cards will be at higher interest rates and you might end up in trouble again.

It might be wise to take a break from incurring new debt until you’re sure that can manage it.

Leon Rountree III
Consumer Bankruptcy Attorney

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