QUESTION
If I want to file bankruptcy, but I have credit cards that are in good standing, do I need to include those credit cards?
Asked on Mar 11th, 2015 on Bankruptcy - Michigan
16 ANSWERS
The credit card companies get notified immediately upon your filing BK. Their computers will close your cards immediately. It is all done electronically and automatically.
Answered on Mar 16th, 2015 at 2:30 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Part of a bankruptcy is a listing, under oath of perjury, that you have listed all your debts. The best way to keep a credit card is to have it paid off when you file.
Answered on Mar 16th, 2015 at 4:23 AM
Debt Relief Attorney serving Anaheim, CA
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Marlin Branstetter Attorney at Law
All debts must be listed in your bankruptcy. In my experience the credit cards are cancelled when the bankruptcy is filed even if you are current or have a $0.00 balance.
Answered on Mar 13th, 2015 at 1:28 PM
When you file bankruptcy all debts must be included, whether they are in good standing or not. When you sign the documents associated with the bankruptcy filing, you are signing under the penalty of perjury and swearing that you have included all of your creditors. Unfortunately, you can not pick and choose which unsecured creditors are treated/discharged. To do otherwise would be to show preference, which is prohibited by the Bankruptcy Code. This is true whether you are filing Chapter 7 or Chapter 13. Even if you did not list the creditors in your bankruptcy schedules, the creditors would most likely discover your filing because of reporting to the credit bureaus. You will receive credit card offers after you file. Filing bankruptcy can actually improve your credit score and provide you greater access to credit.
Answered on Mar 13th, 2015 at 10:47 AM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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When filing for relief under the bankruptcy code, you must list ALL your debts and ALL your assets. Even if you intend to continue to pay the debt to the lender. You cannot pick and choose the creditors you wish to retain. That would be considered a "preference" under the bankruptcy code and could result in your case being dismissed.
Answered on Mar 13th, 2015 at 9:54 AM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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All debts and all assets must be included in a bankruptcy filing. Yes, the credit card companies will close those lines of credit.
Answered on Mar 13th, 2015 at 9:00 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Generally yes, and yes. It will be up to the lenders.
Answered on Mar 13th, 2015 at 4:21 AM
Bankruptcy Attorney serving Charleston, SC
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Davis Law Firm
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You must include all debt that you owe when file for bankruptcy. If you have a credit card with a zero balance, you do not have to list it. However, it is likely that the credit card will be cancelled. Almost all of the creditors use a service that reports filings by social security number. Creditors register and get notice of the filing immediately. You need to talk to an attorney to make sure of your rights. You need to understand that filing bankruptcy is not about keeping credit, but, getting a "fresh start".
Answered on Mar 13th, 2015 at 4:20 AM
You are required to list all the credit cards on which you owe a balance, regardless of whether you want to keep them or not. Even if you don't list them, most of them monitor bankruptcy filings nationwide and will cancel your card if they discover you have filed bankruptcy. It depends entirely on the card issuer's policies. You can always try to convince them you will keep paying them, and you can offer to reaffirm the debt. But you can't really count on keeping any credit cards.
Answered on Mar 13th, 2015 at 4:16 AM
2 Awards
Yes, you must include all debt and the cards will be canceled.
Answered on Mar 12th, 2015 at 7:08 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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You must list all creditors to whom you owe money or property, or who claim you owe them money or property, at the time of filing. If you have a zero balance on a credit card, generally you need not list that card. BUT the credit card company has ways of finding out about the BR and canceling the card. Skilled bankruptcy lawyers have some techniques which can help preserve the credit card or cards. Consult one. Incidentally, to get the full benefit of your bankruptcy, you should retain very few cards if possible only one. Good Luck.
Answered on Mar 12th, 2015 at 5:30 PM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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Yes all debts must be disclosed and listed as debts in a bankruptcy filing. Yes, usually all credit card accounts end up getting closed. It's also important to take a look at your payment activity in the previous 90 days before deciding on a BK filing date. The purpose of a bankruptcy is twofold. On one hand it is to provide a good faith debtor who cannot afford to pay their debts a fresh start. On the other hand it is so that all equally situated creditors receive equal treatment. Before Bankruptcy existed, creditors got what they could from the debtors by racing to get their hands on the debtor's assets. Typically, whoever got there first got what was there and leaving the others getting little or nothing. Bankruptcy was created to provide an order and fairness. There are categories of debts. There are secured debts, unsecured priority debts, and unsecured non-priority debts. Credit cards (except for secured credit cards) fall into the category of unsecured non-priority debt. Paying one credit card while not paying others is basically preferential treatment. Hire an attorney to represent you so that they can guide you with respect to this and any other pitfalls that may be an issue in your particular situation.
Answered on Mar 12th, 2015 at 5:30 PM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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It's is a legal requirement to list all your debts regardless of their current standing. In order to keep the accounts in good standing open, you will need to get in contact with the creditor and negotiate with them.
Answered on Mar 12th, 2015 at 5:30 PM
Derek W. Freeman
You are required to list in your petition and schedules each and every debt that you have. That includes credit cards. If you want to keep your credit cards, you could possibly sign a reaffirmation agreement if they agree. Chances are, your credit card companies will not offer a reaffirmation agreement that will be to your liking. They will probably change the terms due to your bankruptcy. You can also keep your credit cards if you pay them off in full prior to filing bankruptcy. But again, your credit card companies are not obligated to keep offering the same terms. They will probably raise the interest rates and lower credit limits if and when you file bankruptcy. It's a bummer, but if your need is great enough, and if you qualify, you should consider filing bankruptcy anyway.
Answered on Mar 12th, 2015 at 5:28 PM
Bankruptcy Attorney serving Grand Rapids, MI
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David Andersen & Associates, PC
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Yes you have to include those credit cards in your filing. You have to list everyone you owe in the petition. Even with a $0 balance (meaning they don't have to be listed since you don't owe them anything), the credit card companies will likely close your account because of the bankruptcy filing as you will be a changed risk.
Answered on Mar 12th, 2015 at 5:28 PM