Giving up a Secured or Prepaid Credit Card when going bankrupt

December 15th, 2009 by Questions

I had completely stopped using my credit cards a few months ago despite still having quite a bit of credit left on them because I am considering bankruptcy. I need a credit card though to be able to keep in my wallet in case of an emergency. If I were to get a secured credit card right now for a small limit of a few hundred dollars, would I have to give the card up when I go bankrupt?
Thank you for all of your help.

Posted from: British Columbia


One Response to “Giving up a Secured or Prepaid Credit Card when going bankrupt”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

When a bankruptcy or consumer proposal is filed you are obligated to either destroy or deliver to the trustee all credit cards that are in your posession, including secured or pay as you go cards.

The only exception to this is where:

(a) the credit card was issued to a third party (e.g. employer, spouse, friend, parent); and

(b) the trustee has confirmation that the issuer or the third party has authorized the bankrupt to continue to possess and use the credit card.

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