A common question asked by many of my clients filing a credit card bankruptcy in San Diego is whether they have to file on all cards or may keep out a particular card. These clients want to keep one of their cards that has a low balance, so that they can continue to use the card after they file their case.
Credit Card Bankruptcy in San Diego, California
When you file a credit card bankruptcy in San Diego, which technically is a Chapter 7 case filed for the main or sole purpose of eliminating credit card debts, your lawyer must include all of your debts in your Chapter 7 filing. You don't get to select which creditors or which accounts to include in your filing. You must include all of your accounts with all of your creditors.
Not only is it a requirement that you and your lawyer list all of your accounts, but it is smart and competent lawyering. You want to get a fresh start, and coming out of bankruptcy with balances owing on one or more cards would not really be giving you a fresh start, would it? Emerging from bankruptcy with account balances that you have to repay would actually be a negative start. It would inhibit your ability to establish and rebuild your credit and therefore would not truly be a fresh start.
If you live in San Diego County, then you can expect that shortly after receiving your discharge in your Chapter 7 credit card bankruptcy, you'll start receiving new credit card solicitations. You see, the banks and financial institutions in this country already know that you cannot file again for several years to come, and you are living in San Diego (which consists of a relatively high income earning population), so they calculate that you are a good credit risk and they extend more credit to you. Sure, the cards will have high interest rates, but if you start practicing good spending habits, which means using the cards only if you have the money to pay for what you are buying and then paying off your balance before the end of your grace period (usually about one month), you will not incur any finance charges. So it won't matter what the interest rates are.
So if you are filing a credit card bankruptcy in San Diego, be sure to provide your attorney with a list all of your cards and accounts so that you can list them all in your Chapter 7 filing. Get a fresh start, then start practicing good spending habits and you'll be on the road to financial success.