Can I keep a credit card with no balance?
I have several credit cards near their limit (totaling closet to $40k) and have been working hard trying to pay them off. Its been tough and slow (paying nearly the minimum) but I managed have managed to pay off one of the credit cards. I have recently suffered a job loss and its been too difficult now and unrealistic to spend years and years to try to pay off the cards when the interest is so high.
If i were to declare bankruptcy, would I be able to keep the 1 credit card I have paid off? Would lowering the limit to say $1000 help in this matter?
thank you for your help.
Posted from: Ontario
When you file for bankruptcy you are required to either destroy or deliver all of your credit cards to your trustee. This is irrespective of whether there is an outstanding balance on these cards or not.
The only exception is where the credit card was issued to a third party (e.g., employer, spouse, friend, parent) and
you provide your trustee with written confirmation that the issuer or the third party has authorized you to continue to possess and use the card.