Once you file for bankruptcy, there is a high possibility that your cards will be canceled. The bank will normally cancel all credit cards upon receiving a notice of bankruptcy, but there are exceptions. Whether or not you can keep your credit cards will typically depend on the way that you bank handles bankruptcy and what bankruptcy chapter you are filing.

If you choose to file a Chapter 13 bankruptcy, then you may lose all your credit cards. You will not have permission to borrow money without court approval while the Chapter 13 is active. In a Chapter 7 bankruptcy, the issue of credit cards is more contingent. If a lender allows you to keep your card, then you can. If he or she does not, then you will need to relinquish the cards until you exit bankruptcy.

Part of the bankruptcy process involves listing all of your creditors, including credit card companies to which you owe money, on your list of creditors. If a lender is one of the creditors, then you may need to surrender your credit card. If you really want to keep your card, you can politely oppose the trustee's request to relinquish the card. This may involve discussions or debates in court, so you will want to evaluate how important it is to you to keep your card prior to opposing the request.

Another tactic which can help you to keep your credit card is by reaffirming the credit card debt. This will create a binding contract with the lender and make you liable for the debt all over again. Since the goal of filing for a Chapter 7 is to remove liability for the debt, you cannot reaffirm the debt under this chapter. Only in Chapter 13 bankruptcies can you reaffirm the debt and gain active use of your credit card.

Many credit card agreements give card issuers the express right to cancel a customer's accounts when that customer files for bankruptcy. This applies even if the lender isn't named a creditor in your bankruptcy. For example, if you have a credit card through Bank of America, and you owe nothing on it and have been reliable about paying off the balance, but you file for bankruptcy because of medical debt charged to other accounts, Bank of America can cancel your credit card anyway.

Some lenders have a police in place which will automatically close accounts when there is a bankruptcy filing. You may want to check on your lender's policy before filing if you are particularly worried about losing your credit cards in the process. Even if you are not allowed to keep your card, you may be able to get another while in a bankruptcy. Many people receive applications for new credit cards after filing for bankruptcy. You may have to use a secured card until your credit score improves, but it will still do the trick until you can effectively emerge from bankruptcy and apply for an unsecured card.

If you are curious about credit cards and bankruptcy, or if you are considering bankruptcy at present and are weighing your options, don't hesitate to use this directory to locate a bankruptcy attorney near you. Bankruptcy is a complicated procedure that should never be completed alone. You need to hire a trustworthy and hardworking attorney to assist you in your filing. With the right, informed professional on your side, you can negotiate with creditors effectively and receive discharges on debts that you cannot cover. Find a bankruptcy attorney today and get started!