Credit Cards with No Balance When Filing Bankruptcy

Can I keep a credit card when declaring bankruptcy?

What do you do with a credit card that has a "zero" balance when you are filing bankruptcy in Arizona?  Occasionally a debtor will report a credit card with no balance on the day the bankruptcy is filed. The Bankruptcy Code does not require a person filing for bankruptcy to report a zero balance credit card. 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.

If you choose not to list a credit card on your bankruptcy petition, the bankruptcy court will not contact your credit card company and notify them of your bankruptcy filing.  Choosing not to 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. Another 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.

Just because you don't include your credit card on your bankruptcy petition doesn't necessarily mean that you will get to keep your credit card.  Remember, your bankruptcy is a matter of public record, and most credit card issuers, large banks and finance companies routinely compare new bankruptcy filings to their own records to see if any of their cardholders are on the bankruptcy filer list.  Even if you don't have a balance on the credit card that you are wanting to keep, the credit card issuer may choice to cancel the card or revoke your charging privileges once they discover your bankruptcy filing. 

There is a risk in trying to keep a credit card through the bankruptcy filing process. Call our Mesa Bankruptcy Lawyers or one of our other low cost bankruptcy attorneys and get assistance from one of our experienced bankruptcy lawyers.  There are options available to you regarding both debt relief and keeping a credit card when filing bankruptcy.