CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Can I Keep Any Credit Cards If I File for Bankruptcy?

Can I Keep My Credit Cards If I File Bankruptcy Tampa, Pasco, St Petersburg Florida.Credit Cards and Bankruptcy

One of the most common questions bankruptcy attorneys hear from clients is whether or not they can keep any of their credit cards when they file.

It’s not a surprising question. After years of relying on credit cards as a security net or for the occasional splurge, the idea of giving up all of your plastic can be a little alarming. This is especially true when you consider everything else you might have to give up if you choose to file.

Unfortunately, if you are planning to file for bankruptcy, you won’t be able to keep any credit cards. Bankruptcy doesn’t allow you to pick and choose what debts you want to be included in your bankruptcy or which you want to keep active, aside from some of the exemptions you’ll be able to declare. Instead, bankruptcy aims to treat all creditors fairly and ensure each debt is repaid or discharged based on the priorities set by the trustee.

Listing Creditors

One of the most common issues that arise when someone is filing for bankruptcy is listing creditors. Many people assume if a credit card account has a zero balance they don’t need to list it when they file for bankruptcy.

This is not the case.

All active accounts, even those with zero balances, must be listed on your bankruptcy petition. If you fail to list a zero-balance account and the account holder is alerted to the fact that you filed for bankruptcy, they will revoke your borrowing privileges immediately.

Furthermore, any accounts you withhold when you file will not be eligible for discharge now or in a future bankruptcy. So if you withhold an account in hopes of using it during and after your bankruptcy, then you accumulate a large balance on that withheld account and you’re forced to file for bankruptcy a second time, that withheld card won’t be eligible for discharge.

The good news is you don’t need to keep any existing cards active when you file because chances are good you’ll be able to get a credit card after you file. US News & World Report has provided this information on getting a credit card post-bankruptcy.

Company Credit Cards and Bankruptcy

One of the most common reasons people want to withhold a credit card from their bankruptcy is because it’s a business card. If your employer has issued you a credit card in your name to pay for work-related expenses, filing for bankruptcy can affect that card. You’ll need to list it in the bankruptcy if you have any liability to the lender under the terms of the card.

How do you know if you’re liable? You can usually tell by examining where the monthly credit card statements are delivered.

If the monthly statement for your company card goes directly to your employer, that’s who’s responsible. If the statement comes to you and you pay it and then submit a request for reimbursement, you’re the liable party.

If you have any personal liability for a credit card, even if it’s used for business expenses and your employer reimburses you, the card must be listed on your bankruptcy petition. And chances are if you’re liable for your company card it will be closed as soon as you file for bankruptcy.

It’s important to speak to your employer if you’re using a company card that’s included when you file for bankruptcy because the last thing you want is for your employer to be notified by the credit card company that the account was closed.

Credit Cards and Your Bankruptcy

Bankruptcy can be a complicated process and all too often, people who try to go it alone have their cases dismissed. One of the most important things you can do to protect your chances of a successful bankruptcy is to work with an experienced professional.

For more information or to schedule a time to discuss your bankruptcy, contact the Law Office of Robert M. Geller at 813.254.5696 to schedule a consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Here’s How You Can Rebuild Your Credit

How do you repair this damage and rebuild your credit after filing for bankruptcy? Many people believe that filing for...
Read More

How Can You Practice Smart Credit Card Management after Bankruptcy?

How can you learn better credit card management after bankruptcy? Using credit after bankruptcy is an intimidating experience for many...
Read More

How Do You Improve Your Credit Score?

How do you improve your credit score? Here's what you need to know. Your credit score plays an important role...
Read More

Does Bankruptcy Credit Counseling Work?

Bankruptcy credit counseling helps you emerge from bankruptcy understanding credit management. People filing for bankruptcy must take two courses regarding...
Read More

5 Things That Boost Your Credit Score

Your credit score has a major impact on your financial life. You can be a great person with a bad...
Read More

How to Correct Errors on Your Credit Report after Bankruptcy

How do you deal with errors on your credit report after bankruptcy? In a perfect world, you could ignore your...
Read More

Tips for Rebuilding Your Credit after Bankruptcy

One of the primary goals after filing for bankruptcy is rebuilding your credit. As tempting as it might be to...
Read More

I’m Starting a New Life and I want a Financial Fresh Start – Should I File for Bankruptcy Now or Wait?

As the say goes, “when it rains it pours.” If you’ve found yourself experiencing financial difficulties while also dealing with...
Read More

What Does It Mean to Get a “Financial Fresh Start” in Bankruptcy?

Financial Fresh Start You’ve probably heard it before. “Bankruptcy gives you a financial fresh start.” It’s something stated on this...
Read More

Tips for Overcoming the Negative Emotions of Bankruptcy: How Can an Attorney Help Me with My Finances?

As advantageous as bankruptcy is when you are struggling financially, it’s still a stressful experience. Some people have a tough...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions