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will my bank close my credit card after bankruptcy

Submitted by on Sun, 01/02/2011 - 08:23
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If I have a Mastercard that I use regularly, and pay off each month on time. If I file bankruptcy, and reaffirm that debt, will the lender close the credit card anyway because I filed?


The court will not allow you to give preference to an unsecured creditor. If you are paying them or have paid them more than $600 (I think) in any preceeding months to your bankrutpcy, they will be forced to give it back. You really need to talk with a bankruptcy attorney for the details. Even if you have a zero balance, they will more than likely close it on you.


Submitted by SOAPLADY on Sun, 01/02/2011 - 12:10

SOAPLADY

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If you file bankruptcy, you'll be able to get your unsecured debts discharged. However, as far as I know, you'll get the option to not include one of your cards if you don't want to file bankruptcy on it. If you don't include the card in your bankruptcy filing, it won't be closed. Nevertheless, as Soaplady has suggested, you should contact a bankruptcy attorney and he will help you know whether or not you need to include that card in your bankruptcy filing.


Submitted by Anna Sweeting on Tue, 01/04/2011 - 22:43

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Quote:


However, as far as I know, you'll get the option to not include one of your cards if you don't want to file bankruptcy on it. If you don't include the card in your bankruptcy filing, it won't be closed.


WRONG! By law you do NOT have this option....you must included ALL debts including those that are nondischargable and those you will reaffirm.


Submitted by SOAPLADY on Wed, 01/05/2011 - 02:53

SOAPLADY

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Soaplady is correct. You must list every creditor you have no matter how small or what your intentions are. However, if there is a $0.00 balance on the card when you file bk then there is no debt and the credit card issuer is not a creditor. However (again), just because you do not list the credit card issuer does not mean it will not find out about the bk. Once it finds out it may or may not cancel the card.

If you pay off the card monthly it is very unlikely the Trustee will attempt to recover amounts paid in excess of $599.99 within the 90 days prior to filing. A preference is a payment on an "antecedent" debt not one that is run up and paid within the ordinary course (using a credit card and paying it off within the grace period is not an antecedent debt). Regardless, recovery of the money is between the credit card issuer and the Trustee. It is not your problem.

Des.


Submitted by despritfreya on Wed, 01/05/2011 - 04:26

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Thanks Soaplady and Des for the information. Well... what I knew was that you will have to list all your debts and assets in your bankruptcy filing. But you'll get the option to not include one of your cards if you don't want to file bankruptcy on it. But after reading your posts, I have understood the matter. Thanks once again both of you :-)


Submitted by Anna Sweeting on Thu, 01/06/2011 - 01:09

Anna Sweeting

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