Is there a way to keep a credit card I need?

Unfortunately, there’s no way to keep a credit card, no matter the reason. 

If you owe a balance on the credit card, you have to list it as a debt. The debt will be discharged and the account closed by the creditor. Bankruptcy law requires that you list all of your debts. You are not allowed to simply “leave out” one of your credit cards. 

Credit cards with a zero balance do not have to be listed on your bankruptcy forms and the creditor will not receive a bankruptcy notice from the court. However, all major credit card issuers run period credit checks on their customers. Once they realize that you’ve filed bankruptcy, your account will likely be closed by the bank. 

What can you do? 

If you have a bank that you’ve been with for a long time, talk to them about opening a credit card after your case has been filed. They know that you can’t file again for quite some time and may give you more favorable rates than a bank you don’t have a relationship with. 

If that’s not an option, don’t worry. You will receive quite a few credit card and loan offers in the mail after your bankruptcy case has been filed. To begin rebuilding your credit, take advantage of one of these offers, but pay close attention to the terms and conditions, so you don’t end up taking on more than you can afford. 

I have to have access to credit to pay for necessities

If you can’t afford your bare necessities (housing, food, and medical expenses) with your current income, consider postponing your bankruptcy filing. Filing for bankruptcy will not help you in the short term and can limit your options for relief. Check out this example to understand why. 

On the other hand, if you haven’t been able to pay your living expenses because you’ve been making payments to your creditors, remember that filing bankruptcy will put an end to that. In that case, try not to ever rely on credit cards for anything, and instead set up a budget to follow. Get a credit card to rebuild your credit, but don’t use it to pay for necessities.