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.
Andy Miofsky, Esq.
Latest posts by Andy Miofsky, Esq. (see all)
- How do I get the title to my car? - November 20, 2019
- Why does the IRS file liens? And what you can do about one. - September 21, 2018
- Social Security Income: Invisible Money Bankruptcy Cannot Touch. - December 19, 2016
- What can and cannot be included on a credit report? - December 21, 2015
- Use Exemptions to Protect Your Property in Bankruptcy - January 20, 2014