Can I leave a credit card out of my bankruptcy?

Keep a Credit Card Out of Bankruptcy?

Can you file for bankruptcy and keep a credit card or “leave a credit card out” of your bankruptcy? Generally, no. Let’s start with the number one rule of bankruptcy which is full disclosure. All assets and debts must be listed in your bankruptcy filing which is signed under penalty of perjury. If your credit card has a balance, it must be listed as a debt in your bankruptcy filing. It cannot be left out of the schedules.

Credit Cards With Balances Must Be Listed

Due to the full disclosure rule of bankruptcy, if your credit cards carry a balance, you must list them in your bankruptcy filing. The credit card company will then receive notice of your bankruptcy and may cancel your account. After all, your balances will be entirely wiped out and credit card companies don’t take kindly to this.

If You Love Your Credit Card, Reaffirming is an Option

If you really love your credit card and want to keep it, reaffirming the debt is an option. Reaffirmation is a promise to pay a debt after bankruptcy. However, because bankruptcy is such an effective tool at wiping out credit card debt and because you will receive offers for credit cards after filing, reaffirming often makes very little sense. See this post: reaffirmation agreements.

Credit Card With Zero Balance Can Be Left Out

Credit cards with a zero balances do not constitute a liability and do not need to be listed in your bankruptcy filing. Keep in mind that the company might find out about your bankruptcy and cancel your account. If the account is not cancelled, you can maintain it after bankruptcy.

Concerned?

Don’t be. Many people receive offers from credit card companies very soon after filing for bankruptcy. Worrying about keeping a credit card is probably a waste of your time.

Looking for additional information? See the related posts section below or consult a bankruptcy attorney.