Most people look to file Chapter 7 bankruptcy to eliminate credit card debt. Some feel it may not be a good idea to keep your credit card especially if you plan on using it after your case is completed. The good news is it is possible to keep your credit card after filing bankruptcy. Many like to have at least one credit card afterwards for emergencies or when certain times call for a credit card such as making reservations online. But, if overspending lead your finances to spiral out of control you may want to avoid credit card use after bankruptcy.
In order for you to keep the credit card you’ll need to reaffirm debt associated with it. This basically states you will pay what is owed on the card after reaching a deal with the credit card company. When you file bankruptcy and include credit card debt, you list all the credit cards you have. This is important because you may not be able to get debt discharged. It is suggested that debtors review this decision carefully. If you reaffirm the debt on the card you will be responsible for making payments under a new agreement. The credit card company may decide if affirming the debt is an option. The credit card company may be willing to work with you in this situation and you may be able to negotiate a reduced amount depending on circumstances.