Generally you can not keep a credit card when you File Bankruptcy in Oklahoma. Are you considering the possibility of bankruptcy or currently in the bankruptcy process and wondering when you can build your credit again? Are you wondering if you can keep your credit cards? If your credit cards have outstanding balances, you can assume you will lose them. This is the case regardless of if you file a chapter 7 or a chapter 13 bankruptcy. But what if they have a zero balance? Its not at all uncommon for people in Oklahoma in financial difficulty to wonder if they can keep a credit card when they you bankruptcy
When you file for bankruptcy, the bank freezes your credit profile during the process. This means you cannot apply for another credit card, loan, or line of credit while your case is pending. To ensure that all your creditors are treated equally and fairly, you must report all your outstanding cards, even if they have a zero balance.
Your creditors will receive notice that you filed for bankruptcy once you report all your cards. Most borrowers will immediately revoke borrowing privileges for the affected account. Creditors will likely not be able to correctly identify the account, and the accounts may not be discharged if you fail to list them. Purposely failing to report the accounts or incorrectly disclosing the account number so that it’s difficult for the company to find has greater repercussions for you.
Different Kinds Of Credit Cards
Most credit cards are issued to the borrower as an unsecured debt. This means that the credit card issuer has made the loan to you without taking a security interest in any of your assets. This kind of credit card will be cancelled when you file a chapter 7 bankruptcy. This includes those cards with zero balance. But, of course as soon as your case closes you will be able to re-apply for a new card.
Secured credit cards are those cards that are issued in exchange for an interest in some asset you own. In the even that you default on the card you will be required to surrender the asset. Its important to understand that all security is not treated the same. Its not uncommon for a payday loan company to lend money in exchange for an interest in your household goods. This is not an enforceable interest in a bankruptcy as this is an exempt asset.
On the other hand, a card issued in exchange for a cash deposit as security is enforceable against the security. In this case the money you put up as security will be lost to the credit card company. In some circumstances you can keep the secured card after you file but this probably wont make sense. The reason is that getting a secured card after you file is easy and most credit card company’s offer it to most applicants.
What About Company Credit Cards?
If you have an employer-issued credit card, you might wonder if you must report that account. Usually, you will need to let your employer know you have filed for bankruptcy. However, you will not need to report that card on your report because you are not the account holder of a company credit card. You won’t have to report it unless you are liable for the company’s card debt.
How Do I Know If I’m Liable For The Debt?
You will know if you are liable for a company’s credit card debt based on a few considerations:
- Who receives the monthly statement from the credit card company? If your employer receives the statement, they are likely liable for the debt. If you receive the statement from the credit card company, you may be the responsible party on the account.
- You receive the statement, pay the bill, and ask your employer for reimbursement. If the statement comes in your name, and you report the balance to your employer for reimbursement, you likely have personal liability for the card and must report it.
If you are still unsure whether you are personally liable for the card, you should ask your employer’s human resources department to be sure. If you are considering bankruptcy and have a company card, you’ll want to talk to your employer before filing for bankruptcy.
Oklahoma Bankruptcy Attorneys Can Help You
Although you can not keep a credit card when you File Bankruptcy in Oklahoma you will be pleasantly surprised how soon after you file you can get a new on. If you’re going through or contemplating bankruptcy, our experienced Tulsa bankruptcy lawyers can help you. If you or a loved one are considering bankruptcy, the attorneys at Kania Law Office can help. The process is easy with the right help. Call (918) 743-2233 today to schedule your free consultation or contact us online.