Bankruptcy and Zero Balance Credit Cards

If you are like a lot of individuals, couples, and businesses in Mesa and Tucson, Arizona, then you may be struggling with debts that are beyond your control.  It is possible that most all of your credit cards are at their limits, however, possibly you have been keeping one credit card paid up so that you can use it for the things that society requires.  The real question is, it's time to file for bankruptcy, can you keep that one credit card?

If you are in Arizona and struggling with debt, contact a expert debt relief agent to best answer the questions that you may have about debt relief.  Occasionally a debtor will report a credit card with no balance on the day the bankruptcy is filed. The Federal Bankruptcy Code does not require you to report a credit card with a "zero balance".  If you don’t owe the credit card company on the date you file the bankruptcy case, it is not a creditor for purposes of filing bankruptcy.  That doesn't mean that you will for sure get to keep the credit card just because you don't report it on your bankruptcy petition when filing for bankruptcy protection in Phoenix, Tucson, Chandler, Glendale, or Scottsdale.

Any credit card that is not listed in your bankruptcy schedules, will not have notice sent to the card issuer by the bankruptcy court that you have filed bankruptcy. If you choose to not include a particular credit card, it could be of some use to you as a credit card account is beneficial in reestablishing a positive credit history after your Chapter 7 bankruptcy discharge. Sometimes credit card companies check on their own and find out about your bankruptcy filing and will automatically cancel your credit card, so please BE AWARE! that it is a possibility.

If you do choose to hang on to a credit card through the bankruptcy filing process there are benefits:  One benefit of not including a zero balance credit card is that you have a viable credit source immediately after your bankruptcy is discharged without having to reapply and wait for credit approval. At times, it may be difficult to find a credit card with decent interest rates after declaring bankruptcy.

However, when you file for bankruptcy protection it becomes a matter of public record, and most large banks, credit card companies, and finance companies routinely compare new bankruptcy filings to their own records. Even though you may not have a balance, the credit card company may cancel the card when they discover your bankruptcy filing. Thus, there is a risk in trying to keep a credit card through the bankruptcy filing process.

If you have problems obtaining a credit card after filing bankruptcy, you may want to take a look at these credit card offers. These cards are designed for low credit scores and recent bankruptcy Filers. A list and details of the top cards can be found at: http://www.badcreditoffers.com/creditcards 

Keep in mind that there are professional and experienced bankruptcy attorneys and debt relief experts available to answer your questions and address your concerns.  Most offer free initial consultations and they are usually the best source to get all of your questions answered regarding filing for bankruptcy, debt relief, and what to do with "zero balance" credit cards.

Chapter 7 and chapter 13 bankruptcy are some of the most popular forms of debt relief.  Contact an experienced debt relief attorney to assist you when making such a decision.