Disclosing Credit Cards When Filing For Bankruptcy

2011-12-16   minute read

When a person files for bankruptcy, they are required to turn over all credit cards to their Trustee. Whether there is a balance owing or not.Exceptions An exception would be a 3rd party card (such as a company expense account card). In that case, the Trustee needs to have a letter on file from the employer that confirms they are in agreement with the Bankrupt keeping that card. The employer is the one responsible for the credit, not the Bankrupt. Another exception would be a card that they've purchased at a grocery store after bankruptcy. These cards don't have the Bankrupt's name on them -- and aren't "credit." They are a prepaid credit card meant to be able to have a card for online, hotel, car rentals, etc. But they don't rebuild a credit rating.Applying for Credit After Bankruptcy If a person applies for credit after bankruptcy over the amount of $1,000, they have to disclose the fact that they are an undischarged Bankrupt. So yes...I would disclose this fact to the Trustee for their review. To learn more about credit cards after bankruptcy, pleasecontact me or refer to ourBankruptcy FAQ.

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