QUESTION:
A lawyer recently
instructed me not to reaffirm any of my creditors
in bankruptcy even though I wanted to and had not
been late in my payments with these creditors. He
said that even if I continued to pay the my credit
card bills on time they would cancel my card and
I would be left with nothing but the debt. Can they
do that if I have kept my payments current and stuck
to the terms of my creditor? Also, could they legally
increase my interest rate even if I have kept my
payments current?
ANSWER:
Your attorney's advice
is on the money. If you file for bankruptcy, your
credit card issuer is likely to kick up your rate
or cancel your card, even though you are current
on the account. Though less than sporting, their
actions would be entirely legal.
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