The fear that many people have when filing bankruptcy is that they will be unable to use a credit card while in bankruptcy.  Especially for travel, having a credit card is often necessary.

If you file bankruptcy, you have no legal right to keep a credit card.  Even if you have a $0 balance the day of the bankruptcy filing and you never missed a payment on the credit card, the credit card company has the right to cancel the card anyway.  Sometimes credit card companies do this because you no longer meet their criteria for card eligibility.  Sometimes they do it because the filing of a bankruptcy petition prohibits a creditor from legally collecting a debt.  Whatever the reason is, you might lose the card.

You have a legal obligation to list all your debt on your bankruptcy paperwork.  If you leave the credit card company out of your bankruptcy paperwork, the credit card company can still cancel your credit card.  The companies do this because they check your credit report every month, and many will cancel the card if you file bankruptcy. 

If you want to keep the credit card, you can try reaffirming the debt in the bankruptcy court.  Some credit card companies allow you to keep a credit card if you sign a reaffirmation agreement.  A reaffirmation agreement means that you sign a written document stating that you are agreeing to repay a debt even though it would otherwise be discharged in bankruptcy.  A bankruptcy judge will require you to have a hearing before agreeing to reaffirm the debt.  The bankruptcy judge will question you as to why you want to keep the debt before allowing you to do so.

If you are considering filing bankruptcy in Naples, contact the Rothrock Law Firm at (239) 206-1853.


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