Can I Keep My Favorite Credit Card When I File Bankruptcy?

The number one rule when filing bankruptcy is full disclosure of your assets and debts. That means that you have to list everything that you own and everybody that you owe. So if, for example, you have a Sears card that you’ve used for many years, unfortunately, unless it has a zero balance, it must be listed.

Here is something to consider: Let’s say that you have a zero balance on a few credit cards and, therefore, you do not list them on the bankruptcy petition. There is nothing to prevent that creditor from cutting off your credit from that that card. Credit card companies have a way to scan the bankruptcy system, to check for card members. Once they have identified a customer as having filed, that customer may receive a letter that might say something like, “Thank you for your business but we see that you have filed bankruptcy and are closing your account.”

When you come to the decision to file bankruptcy, be prepared to list and let go of all your credit debt. That’s what getting a fresh start is about.