Can I keep one of my credit cards and not put it on my bankruptcy?

All Creditors Must Be Listed

If you are filing bankruptcy, then all of your creditors must be listed.  This includes credit cards, personal loans, auto payments, mortgage payments and any other debt, including debts owed to family members.  I understand that many people have lived off credit cards, they love the convenience of credit cards and they want to keep one credit card free and clear and they don’t want to lose it in the bankruptcy.  Now, this is true even if they have a zero balance on that card and even if it’s the card that they’ve had since they turned 18 and they’ve had it forever and they don’t want to lose it.

The problem is the Bankruptcy Code mandates that all debts be listed on your bankruptcy petition.  The trustee is going to inquire as to whether or not you have listed all your assets, all your liabilities, anybody that you owe money to.  So even if you have a zero balance, don’t plan on being able to keep that credit card because the credit card company is typically going to send you a letter terminating your charging privileges after filing.

Offers For Credit After Filing

If you are worried about losing credit cards and not being able to get credit cards again, don’t worry about it.  You will get offers for credit immediately after a Chapter 7 case is filed and shortly after a Chapter 13 bankruptcy case is filed.  You must comply with the Bankruptcy Code first and foremost.  You must provide all the information that your attorney asks you and you must sign the documents under all penalties of perjury that you have listed all of your assets and all of your liabilities.

Consider A Secured Credit Card

If you need a card immediately after filing a bankruptcy, then I would suggest that you get a secured credit card.  A secured credit card is where you put money in the bank that you have charging privileges up to that amount.  Eventually, secured credit cards can turn into unsecured credit cards in just a few months.  So please, list all of your debts, even if it’s a card that you want to keep and you think you can keep it free and clear from your bankruptcy.  The truth is it must be listed on the bankruptcy.  You’re going to lose that credit card.

 

 

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