Can I Keep My Favorite Credit Cards Off My Bankruptcy?

04 Apr Can I Keep My Favorite Credit Cards Off My Bankruptcy?

“No, you are required to include all of your debt, including credit cards, when you file bankruptcy”, says Illinois Bankruptcy Attorney Andy Miofsky. Some clients ask whether they have to list one or two of their favorite credit cards. They want to know whether they can keep using those cards after they file. That does not work and here is why.

Each creditor listed on your case receives a notice from the bankruptcy court. This notice includes a warning, called the automatic not to try and collect a debt from you without permission from the court. This is an important notice and it protects debtors from collection activity. Violators can be punished and forced to pay money damages.

Credit cards are issued by major banking institutions. These banks do not want to be sued for violation of the automatic stay. So these banks monitor bankruptcy filings through electronic internet data services like PACER or AACER, BANKO or MERLIN. They do not sit back and wait to receive a notice in the mail. They regularly check all cases to see if any of their card holders are involved.

When a bank locates a customer in bankruptcy, the bank closes that account on its own, even though the bank was not listed in the case. Hiding a card from the bankruptcy court will not keep the card open.

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Andy Miofsky, Esq.

Andy Miofsky holds the highest AV PREEMINENT rating from Martindale Hubbell Law Directory and a perfect 10.0 from AVVO. Andy is an Illinois consumer rights lawyer with offices in Granite City Illinois. Andy represents people with bankruptcy and student loan debt problems throughout the Southern District of Illinois since 1979.
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