Illinois, IL asked in Bankruptcy for Illinois

Q: Can I file for bankruptcy only on credit cards that I owe on? Or, do I have to do so on all my credit card accounts?

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1 Lawyer Answer
Andrew John Hawes
Andrew John Hawes
Answered
  • Bankruptcy Lawyer
  • Niles, IL
  • Licensed in Illinois

A: Technically, you only have to disclose actual debts that you have as of the date of filing of the bankruptcy petition. So, if you have a credit card with a zero balance on the day you file for bankruptcy, you don't have to list it on your schedule. Whether or not you'll actually be able to keep the card depends upon the facts of your specific case-for example, if you made a large payment on that one credit card prior to filing bankruptcy, the bankruptcy trustee will be able to recover that money as a "preference." If this happens, you will likely not be able to keep the credit card.

If you are filing for bankruptcy though, I would recommend using it as an opportunity to break away from the credit world altogether for a while. Living without credit and on a budget will help you stay out of financial trouble going forward.

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