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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?
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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