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Credit Card Debt: Can I Keep My Credit Cards When Filing for Bankruptcy?

 Posted on May 29, 2015 in San Antonio Bankruptcy Attorney

Texas bankruptcy attorney, Texas Chapter 7 lawyer, Texas Chapter 13 lawyer,Most debtors face similar personal and emotional conflicts. The uncertainty that comes with insurmountable debt can cause immense stress, and many Americans feel overwhelmed with the complexities of financial recovery. Although many debtors share these concerns, each case is unique.

There are many causes of debt—from medical bills to a sudden loss of employment. One of the most common sources is credit card debt. With high interest rates and the convenience of credit, these cards land many Americans in financial turmoil. This article will shed some light on credit card debt and address some of the associated concerns.

Three Factors Determine If Your Credit Card Accounts Will Close Due to Bankruptcy

All bankruptcy filers must provide a complete record of their debts. This includes credit card debt.

At some point during the bankruptcy process, your creditors will receive a notification of your declaration of bankruptcy. Credit card companies can choose to cancel your cards after receiving this information. In most cases, creditors will consider three main factors when making the decision to close an account or to leave it open:

  1.       The total debt owed;
  2.       The type of bankruptcy filed;
  3.       And the account holder's credit score.

Although you must report all debts, you do not have to report credit card accounts with a zero balance. However, the trustee may require you to relinquish your credit cards.

Bankruptcy Appears on Your Credit History

Even if a creditor does not receive a notification of your bankruptcy, the information will still appear on your credit report. As a result, all of your credit card providers have access to this information. Upon review of your credit report, the creditor may choose to cancel the account.

Consult a Bankruptcy Attorney for Helpful Insight

Because each bankruptcy case is unique, an assessment from an experienced San Antonio bankruptcy attorney may prove invaluable. An attorney can provide useful insight and help you avoid making mistakes during the bankruptcy process. If you would like to speak with a bankruptcy lawyer, contact the Law Offices of Chance M. McGhee at 210-342-3400.

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