Can I Keep a Credit Card Out of My Bankruptcy?

A lot of people wonder if they can keep a credit card out of their bankruptcy when they file bankruptcy. Will they be able to retain the use of that card, if it's zero balance, and it doesn't get listed in the bankruptcy?

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Transcript

Hi there. A lot of people wonder if they can keep a credit card out of their bankruptcy when they file bankruptcy. Will they be able to retain the use of that card, if it's zero balance, and it doesn't get listed in the bankruptcy? And that has happened on occasion, where we've had a credit union allow a member to keep a card, but by and large, what you need to plan for is that all of your cards will be closed.

And the reason for that is, even if you keep the card out of your bankruptcy because you don't owe it any money, so legitimately you don't have to list them, if you don't owe them money, those cards and those institutions, are checking your credit score and your report, on a regular basis. And the bankruptcy will show up. They have that flagged, and when they find out about the bankruptcy, typically they close the line.

And one of the things that we'll talk about, in a separate video is, how do you rebuild your credit, how do you get credit back, how do you get credit cards back?

But for our purposes this morning, I just want to make it clear that we tell our clients that they need to plan that all of their cards will not be available to them for use after they file bankruptcy.

Now, fear not, we've got a solution, we've got ways that you can have a credit card, things that you can do to get a secured credit card, so that you can rent a car or make reservations, that kind of thing. So, we're not without solutions here, but I just need you to know, that card that you've had for 25 years, they're probably going to close it. And the sooner you understand that, the better off you'll be.

And then, as soon as you understand that, you can move on to the solutions you need to move on to, in order to get on with your financial life, after you've filed bankruptcy.