| Many bankruptcy filers are wondering whether they | | | | However, there are credit card holders who have |
| are entitled to keep one or several credit cards for | | | | maintained their credit cards at zero balance for a |
| emergencies backup. In general, you may not | | | | long period of time do not report their credit cards |
| because your credit cards will be cancelled regardless, | | | | during the filing. This action can be considered illegal |
| since you file the bankruptcy. The credit card issuers | | | | since in effect your preference on one creditor (your |
| tend to punish their card holders for filling any kind of | | | | credit card issuer) over other creditors, because |
| bankruptcy; in most cases, the credit cards of | | | | repayment ordination is a trustee job. |
| bankruptcy filers will be terminated once they file for | | | | If you are not eligible to file under chapter 7 or even |
| a bankruptcy. But there are some exemptions where | | | | you are filling under chapter 7 but you didn't manage |
| terms and conditions will be applied to enable the | | | | to get approval from your credit card issuers to |
| bankruptcy filers to continue holding their credit cards. | | | | keep your credit cards, the best thing is report all |
| There are some exceptions applicable only to chapter | | | | your credit cards and give them up. In most cases, |
| 7 bankruptcy filers. Some credit card's issuers will | | | | your need to wait until the bankruptcy filing has |
| allow you to keep your credit card but with a sized | | | | cleared and then work with a debt management |
| down credit limit, and in return you need to repay | | | | consultant to rebuilt your credit step by step. Of |
| them for some of your debts. In fact, some | | | | course, in the months and years after the |
| companies will automatically send you or your | | | | bankruptcy filling, you may not be eligible for top-tier |
| attorney a proposed reaffirmation agreement, a | | | | or even middle-tier credit cards. |
| contract between you and your creditor that you will | | | | But with some efforts and fiscal strategy such pay |
| pay all or a portion of the money owed, despite the | | | | your monthly credit balance in full and on schedule will |
| bankruptcy filing, in exchange for a minimal amount of | | | | help you to rebuilt your good credit record and you |
| new credit. | | | | can begin to erase the stigma of the bankruptcy; and |
| Beside the sized down credit limit, a chapter 7 | | | | eventually put you back in the realm of good to high |
| bankruptcy filers may allow to keep their credit cards | | | | credit score. |
| by some of their card issuers but the interest rate | | | | In Summary |
| will be revised to a higher than the normal interest | | | | In most cases, bankruptcy filers need to give up their |
| rate. But, if you can always pay your credit balance in | | | | credit cards. But, there are exceptions for |
| full each month, you will never incur a finance charge, | | | | bankruptcy filers in chapter 7, the debtors who file |
| and the high interest rate won't hurt you. | | | | their bankruptcy under chapter 7 may allow to keep |
| Other than chapter 7 bankruptcy filers, all credit | | | | their credit cards with some terms and conditions. |
| cards must be given up at the filling of bankruptcy. | | | | |