If I File Bankruptcy Can I Keep My Credit Cards?

To many consumers, this may be an odd question since the overall purpose of bankruptcy is to eliminate debt. While many debtors often include credit card accounts they are unable to pay, some may have a credit card account that is in good standing.  A debtor may feel that the account in good standing may help them continue to build credit after bankruptcy but this theory may not be as simple as you think.

When you file bankruptcy, you are required to list all of your debts including accounts that are in good standing.  Creditors will learn about your bankruptcy, even those who were not listed upon filing.  When you file, the automatic stay goes into effect which affects all creditors.  The credit card company in which you have an open account with may choose to cut off the usage of the card in order to avoid violating the stay.

If you want to keep the account you may need to contact the credit card company before filing.  Mention that you intend to file for bankruptcy and ask if the card account can be reaffirmed during the filing. You should also discuss which debts can be or should be reaffirmed with your bankruptcy attorney.