Disclosing Credit Cards When Filing For Bankruptcy

2011-12-16

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.

Latest Blog Posts

2025-07-23

Do I keep my car in a Bankruptcy or Consumer Proposal?

Caryl Newbery-Mitchell

Lifestyle Debt Alternatives to Bankruptcy

We’re here to answer your questions about whether you will be able to keep your vehicle if you choose Bankruptcy or a Consumer Proposal to work towards achieving a debt-free future.

Read More

2025-07-14

Nearly half of Albertans are $200 or less away from financial insolvency each month, more than any other province, amid ongoing economic uncertainty

Lindsay Burchill

MNP Consumer Debt Index

Nearly half of Albertans (47%, +2 pts) report they are $200 or less away from financial insolvency each month — more than those in any other province — according to the latest MNP Consumer Debt Index.

Read More

2025-07-14

Nearly half of Quebecers regret their debt as life plans stall and financial anxieties take hold amid ongoing economic uncertainty

Frederic Lachance

MNP Consumer Debt Index

Nearly two-thirds of Quebecers say they desperately need interest rates to go down (63%, -2 pts), according to the latest MNP Consumer Debt Index.

Read More

Consultation icon