This is a question that I hear pretty often, so let me clarify this for you. One of the requirements of filing a bankruptcy is full disclosure of all assets and liabilities. When you sign your bankruptcy petition, you are doing so under penalty of perjury and nobody wants to be accused of defrauding the federal bankruptcy court.
If you owe a credit card that has an outstanding balance you MUST list it as a creditor on your bankruptcy petition. Yes, the creditor will receive notice and yes it is highly possible they will cancel your card. You do have the option of reaffirming the debt, which puts you back on the hook for payment, but that doesn’t mean that once you pay the debt the creditor will allow you to keep the account open. So in most cases reaffirming an unsecured debt really doesn’t make too much sense.
If you have a credit card with a zero balance, then you are not required to list the debt as it’s not considered a liability. However, this doesn’t mean that the creditor won’t find out about your bankruptcy and cancel your card anyway. If the account is not canceled, you can continue to use your card once your bankruptcy is over.
In any event, you will get credit again. It’s common for debtors to receive offers immediately after bankruptcy, so all of this worry is nonsense anyway. You might not get the great rates you had before, but it takes a little time to get back on track.
This is precisely why I created a Restart Your Life package for my bankruptcy clients. I want you to get back on the right track to financial freedom. You can start immediately after bankruptcy. My book “Life after Bankruptcy” is a great read for anyone wanting to rebuild their credit, not just those coming out of a bankruptcy. You can download it on my website or by clicking here or visit www.RestartYourLifeJax.com.
Not only do I offer a post-bankruptcy consultation, I will re-pull your credit post-bankruptcy to make sure your creditors are properly reporting. After all, there is no sense in going through the bankruptcy if it’s not reflected properly on your credit report.