The Tenth Thing Not to Do When You Are About to File for Bankruptcy

Posted by on Sep 22, 2014 in Bankruptcy | 0 comments

The Tenth Thing Not to Do When You Are About to File for Bankruptcy

Don’t omit or “save” a credit card for after your bankruptcy. They will all be cancelled once you have filed. Even if you have a $0 balance on the day of filing and do not list the card (you don’t have to list them as a creditor if you don’t owe them anything), they still have “bots” that troll the bankruptcy filings and will get the information that you’ve filed. Your cards will all be cancelled.


Another thing to think about is credit cards on which you are an “authorized user.” Those accounts may also be closed, even if the primary cardholder has not filed for bankruptcy. Some creditors have a knee-jerk reaction to either party filing and will cancel the credit card. This may pose some problems for the primary cardholder, who may not expect to have their card rejected the next time they try to use it.


If you have a joint account with another person, that person’s obligation to pay the debt did not go away when you filed for bankruptcy. They will now have full responsibility for paying the balance on the account.


Also, keep your most recent statements. In the event the authorized user/primary cardholder’s account is cancelled, if they aren’t filing for bankruptcy, they will need to pay. The credit card company will not (and cannot) send out statements during your bankruptcy, so the primary cardholder will need to continue to send payments to the statement address on the last one they received.


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