Can I Keep My Credit Cards after Filing for Bankruptcy

Filing for Bankruptcy

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When we prepare bankruptcy paperwork, one of our duties is to make sure that ALL of our clients’ debts are listed. That is true for a Chapter 7 liquidation, or a reorganization like a Chapter 13, 11, or 12.

However, there are debts our clients would prefer to keep. This makes sense. Post-bankruptcy credit is tricky to navigate, and many transactions are easier with credit cards or other debts already in hand.

With credit cards, most lenders like Capital One, Chase, Bank of America, Citi, and others have the option of signing up for electronic bankruptcy notices. They also have access to the federal PACER system, which monitors bankruptcy filings (along with federal civil and criminal cases). So they know when people file for bankruptcy.

This means that for some people, cards will be closed – even if there is a $0 balance on the cards and even if they aren’t listed because there is no current debt. That’s not a decision we make – it’s up to the lenders. Even though the new debt would be “post-petition” (after the bankruptcy filing) and not subject to bankruptcy protection and discharge, it’s still new debt on a pre-filing card, so it’s a tricky issue.

The bottom line is that unless the card is secured by some collateral (like a CD, bank account, or other property), it will be hard to keep it after your bankruptcy filing. It’s easier to start fresh with a new line of credit or credit card after filing.

Keeping Credit Cards after Filing for Bankruptcy

If you have any questions and would like to schedule an appointment with one of our bankruptcy attorneys, don’t hesitate to call WM Law at 913-422-0909. Or you can visit our website for more information At WM Law, we are here to help!

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Jeffrey L. Wagoner


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