If you are considering filing for bankruptcy, you are probably wondering what will happen to your credit cards. A common question that many people have is whether they can keep one credit card during the bankruptcy process. While the answer depends on your unique situation, in some cases, it is possible to keep one credit card.
Here’s what you should know before you file.
When you file for bankruptcy, all of your credit cards will be included in the list of debts that you owe. However, there are situations where you may be able to keep one credit card. For example, if the credit card has a zero balance at the time you file for bankruptcy, the bankruptcy court may allow you to keep it. This is because the credit card company does not have a financial interest in your bankruptcy proceedings.
Secured Credit Cards
Another situation where you may be able to keep one credit card is if you have a secured credit card. A secured credit card is one where you put down a deposit to secure the credit limit. If you have a secured credit card and are up to date on your payments, you may be able to keep it during bankruptcy. However, you will need to continue to make payments on this card after filing for bankruptcy.
If you have a credit card with a balance that you want to keep, you may be able to reaffirm the debt. This means that you agree to continue to pay the debt, even after the bankruptcy process is complete. If you reaffirm a credit card debt, you will still be responsible for making payments on it.
While the ability to keep a credit card during bankruptcy may sound appealing, it is important to consider the bigger picture. If you have a large amount of credit card debt, filing for bankruptcy may be the best option to get a fresh financial start. Keeping one credit card may not be worth the financial burden of the other credit card debts that you must repay.
Contact an Attorney to Discuss Your Credit Situation
It might be possible to keep one credit card during bankruptcy, but it depends on the unique circumstances of your situation. You may be able to keep a zero-balance credit card or a secured credit card, or you may be able to reaffirm a credit card debt.
However, it is important to consider the bigger picture and determine if filing for bankruptcy is the best option for your financial future. If you have questions or concerns about filing for bankruptcy, please consult with a qualified bankruptcy attorney.
For more information or to schedule a consultation or to discuss your credit card situation, contact R. Flay Cabiness, II, P.C. at (912) 417-5041 (Brunswick, GA); (912) 809-2141 (Hazlehurst, GA) or; (912) 324-3176 (Jesup, GA) to schedule a consultation.
