Q: If I file chapter 7 can I exempt one or more unsecured credit cards if they are current?

A: You will have signed the Official Bankruptcy forms that ask you for all debts owed on the date of filing, under penalty of perjury, as of the date of your bankruptcy petition filing, as well as the Statement of Affairs, which ask about past payments of debt.

In addition, all credit card issuers seem to have software and get notified when any of their cardholders file bankruptcy, and the credit cards are automatically cancelled at the moment of filing.

If you owe a balance on your favored credit card, you can perhaps do a Reaffirmation, with the creditor's consent and Court approval.

Confer with your bankruptcy lawer about this. Be open and honest!

A: When you file for Chapter 7 bankruptcy, you are required to list all your debts, including unsecured credit cards, even if they are current and paid off each month. Bankruptcy law mandates that all creditors be treated fairly, which means you cannot pick and choose which debts to include or exclude. The bankruptcy trustee will review all your debts as part of the process.

However, if there is a specific credit card you wish to keep, you might be able to do so by reaffirming the debt with the creditor. This means you agree to continue making payments on that debt, and it will not be discharged in bankruptcy. Keep in mind that the creditor must agree to this arrangement, and they are not obligated to do so.

It's essential to understand that any credit card issuer may still decide to close your account, even if you are current, as a precaution when they see a bankruptcy filing. Be prepared for this possibility and plan accordingly.