Can I Keep a Credit Card Out of My Chapter 7 Bankruptcy?

Bottom line, no. The bankruptcy estate is much like a probate estate. Once you file your petition, your financial estate is essentially handed over to the trustee. The Bankruptcy Code is designed to prevent preference of one creditor over another; therefore, all credit cards and other debts must be equally included in your Chapter 7 Bankruptcy.

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It would be unfair for you to pay one creditor and not another simply because you want the ability to obtain further credit. Regardless, even if you had a "0.00" balance on the account, once the bankruptcy is reported to Equifax, Experian and Transunion, most creditors automatically post a designation of "bankruptcy" and close the account. Also, keep in mind that use of credit cards may have put you in the position where you need to file a Chapter 7 Bankruptcy. Continuing the use of credit is likely to put you back on the same financial path. The only way to take full advantage of a Chapter 7 Bankruptcy is to figure a way to live within your means and stick to that plan.