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There are many credit card issuers out there promoting what some people refer to as "bankruptcy credit cards" - that is, credit cards for people who have a bankruptcy on their credit report. Of course, these credit card issuers target individuals with poor credit in general, not just those with bankruptcies - but for the purpose of this article, we will use the term "bankruptcy credit card". Most of the bankruptcy credit cards you see advertised are secured credit cards. If you are not familiar with a secured credit card, it's "secured" by a special savings account you establish with the issuing bank which acts as collateral for the line of
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According to the American Bankruptcy Institute "household debt is at a record high relative to disposable income." The Administrative Office of the U.S. Courts reported that the number of filings for the year ended March 31, 2003 "exceeded 1.6 million for the first time in any 12 month period," a 15.1 percent increase from the previous year. There are two basic types of personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 Bankruptcy and Chapter 13 are legal proceedings that are available to a person to cope with a financial crisis. Personal bankruptcy must be filed in a
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