When I File for Bankruptcy, Can I Keep my Credit Cards?

Bankruptcy is a constitutionally protected right that can provide debtors with an opportunity for a new beginning financially. Filing for Chapter 13 bankruptcy in California gives you the chance to pay off your debts under the protection of the bankruptcy court, while filing for Chapter 7 bankruptcy can eliminate your debts. If you are burdened by overwhelming financial responsibilities and are facing foreclosure, repossession, wage garnishment, or other serious debt-related consequences, our Los Angeles bankruptcy lawyer can help.
When you file for personal bankruptcy, all your debts and financial obligations must be listed on your bankruptcy forms. This includes your credit cards. If you do not owe money on the card, you may not necessarily need to list the card, but the credit card company may cancel the card anyway as a precautionary measure. If the card was recently paid off, the bankruptcy court may consider that you showed that particular creditor preferential treatment, which can be illegal.

If you would like to keep a particular credit card that has a balance on it, you may be able to keep it if you reaffirm the debt, or agree to pay the debt. The card company will then require you to pay it off under a new cardholder’s agreement.

Because bankruptcy laws are complex, the advice of our experienced bankruptcy attorney can be invaluable. We can assist you with determining which set of bankruptcy exemptions is best for your situation and will help you protect as much personal property as is possible as we guide you through filing and more.

If you are facing bankruptcy, you should know you are not alone. From Chapter 7 to Chapter 13 and personal to business bankruptcy, our bankruptcy attorney in California can help you complete your forms and list your assets and debts thoroughly and accurately under the law.

Source: Los Angeles Bankruptcy Attorney

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