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Am I allowed to keep any credit cards I had prior to filing bankruptcy?

Posted by attorney Clint Dunaway

Most likely you will not be able to keep any of your credit cards after filing bankruptcy. If a credit card has a balance then it must be listed in the bankruptcy. The credit card company will then be notified that you filed for bankruptcy and close down that account. Now, if the balance on a specific credit card is zero then they do not have to be listed in the bankruptcy and won’t be notified when you’ve filed. However, if they check your credit at a later date and see the bankruptcy then they will most likely close out the card.

As soon as a bankruptcy is filed an Automatic Stay of Protection is created. This Automatic Stay prevents creditors from ever attempting to collect from you again. The penalties for violating the Automatic Stay are very harsh and this is why your credit card company will close out your account—they don’t want to be accused of attempting to collect money from you after filing bankruptcy.

Don’t worry; you will be able to get another credit card after filing for bankruptcy. Most clients report that they are inundated with credit offers soon after filing.

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