A lot of our clients have at least one Credit card that is in good standing that they express a desire to hold onto throughout and after the Bankruptcy. Unfortunately, in bankruptcy we can’t choose which debts can be filed on and which are left out. There is a possibility that a credit card that is at a zero balance could survive the bankruptcy. However, many credit card companies have third party scanning systems that inform creditors of a filed bankruptcy. There is no guarantee that the credit card company will not find out about the bankruptcy on their own and close the account, even if there is no current balance due.

Most of our clients want to keep the cards so that they can reestablish credit or rent a car in the future. It would surprise most of our clients to know that the opportunities to reestablish credit are ample once the bankruptcy is filed. Credit card and auto loan offers begin to roll in almost immediately after filing because the creditors know that you will be anxious to rebuild and you cannot file another chapter 7 bankruptcy for at least 8 years.

For more information contact your Yuba City bankruptcy attorney at 530-797-4402.

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