Chapter 7 Bankruptcy Credit Cards?
Chapter 7 Bankruptcy: Can I Keep my Credit Cards?
There is no simple yes or no answer as to whether or not a client can keep a credit card(s) when filing for Chapter 7 Bankruptcy. This is a question heard often by clients coming into both my offices in Stuart and Port St. Lucie. FL. The issue centers around the balance owed on the credit cards (high balances paid off prior to filing could result in preferred creditior status payments which would subsequently be reversed in Bankruptcy) and whether or not the credit card company will continue to maintain a line of credit after you file. The answer to the second issue is it has gone either way. Sometimes the credit card companies close the lines of credit, sometimes they don’t. If you have questions regarding any issue with Bankruptcy, debt, contract or any other legal issue, please call and schedule free consultation.