Am I allowed to keep any credit cards after I file for bankruptcy in Arizona?
The short answer is, probably not. Generally once you file bankruptcy your credit cards will be closed by the card issuer.
Can I exclude a credit card with zero balance from my bankruptcy?
If a credit card has a balance then it must be listed in the bankruptcy. The credit card company will then be notified that you filed for bankruptcy and close down that account. However, if there is a zero balance on a specific credit card then you do not have to list it in the bankruptcy. Credit card companies periodically check your credit and if they find out that you’ve filed bankruptcy they will most likely close out the credit card.
As soon as a bankruptcy is filed the Automatic Stay of Protection is created. This Automatic Stay prevents creditors from ever attempting to collect from you again. The penalties for violating the Automatic Stay are very harsh and this is why your credit card company will close out your account—they don’t want to be accused of attempting to collect money from you after filing bankruptcy.
But don’t worry; for good and bad you will be able to get credit card after filing for bankruptcy. Most clients report that they are inundated with credit offers soon after filing. If you are struggling with credit card debt and need to speak with a bankruptcy attorney then call us at 480-389-6529 or email at [email protected].
