Many people in Alabama struggle to make ends meet. In this situation, a viable option may be to file for bankruptcy. However, you may have many questions about this process. For example, can you keep your credit cards?
What happens to your credit cards when you file for bankruptcy?
When filing for bankruptcy, you must report all of your credit cards. This includes cards with no balance.
Since you must report these in the bankruptcy filing, you generally cannot keep them. While this is true, credit cards will likely become available again to you as time passes. The first offers you receive will likely be for secured cards; however, these are great for rebuilding your credit.
While not having any credit cards can be frustrating, it is a trade-off to the benefits of bankruptcy.
Are company credit cards affected when you file for bankruptcy?
If you have a company-issued credit card from your employer, you may wonder if it will be included in your personal bankruptcy filing. You must only list this card if you are personally liable to the lender.
Some company credit cards require employees to pay the balance and seek reimbursement from their employer. If you have any personal liability for the credit card, it must be included in the filing. However, if your employer handles it, you do not need to include the card.
Understanding what happens to credit cards when you file for bankruptcy
Understanding what will happen to your credit cards when you file for personal bankruptcy will help you prepare for the outcome. Knowing your legal options and rights is important, as this will help you make the most of the financial reprieve that bankruptcy offers.