Filing for bankruptcy results in an automatic stay, meaning creditors can no longer hound you for payment, including credit card companies. However, that doesn’t mean your maxed-out credit card is suddenly useable again or that your account will remain intact. Some card companies terminate accounts belonging to those who’ve filed for bankruptcy, even if there’s no balance on the card. If there is a balance on the card, that card will be canceled when you file.
After bankruptcy proceedings are completed and your debt is discharged, you can apply for new credit cards, but you will face higher interest rates due to your reduced credit score. Bankruptcy will also appear on your credit report for a number of years, depending on the chapter. Chapter 7 can remain on your report for up to 10 years, while Chapter 13 can remain for up to 7.
