Can I Keep My Credit Cards After Bankruptcy?

Most of my clients are very concerned about credit. They have gotten into debt as a result of credit and they can’t bear the thought of living without credit. Thus, one of the first questions that I get asked is, “can I keep one or two of my credit cards, I don’t have a very high balance on these?” The answer is generally no. Credit card providers are usually not interested in keeping a cardholder who has filed for bankruptcy. Most providers subscribe to a service that advises them of the recent bankruptcy filings. Even if my client has a zero balance on a card, he is most likely going to receive a letter that the charging privileges have been terminated.

However, there is hope to those that absolutely can’t live without a credit card. For those persons, I would recommend a secured credit card which can be obtained immediately after filing. A secured credit card is a bank issued card which is linked to an account which equals the credit amount. Thus, it is the individuals own money that they are using for credit. However, this does help the person’s credit rating and can lead to unsecured credit offers in a timely manner.

Thus, plan on losing all of your credit cards when filing either a Chapter 7 or Chapter 13 bankruptcy case. But, be careful because new offers will arrive shortly thereafter.

Joliet Bankruptcy Lawyer David M. Siegel has office hours in the Joliet office, 81 N. Chicago St., #303, Joliet, IL every Saturday morning.