Unusual Questions & Situations in Bankruptcy

If you are about to file for bankruptcy, you may have a lot of questions for your bankruptcy attorney. You can ask all the questions you want, since the attorney will know the answers. However, there are certain unusual questions and situations in bankruptcy that may present a problem for you, and you should carefully reflect on these before asking about them.

Can You Keep One Credit Card and Continue Making Charges?

People often ask if they can keep one credit card off of their bankruptcy filing and continue to use it. While this is a sketchy action at best, the answer is, yes, you can. The problems that arise from doing this is that you may have to answer for it in bankruptcy court when a credit report is pulled and the judge or creditors notice this discrepancy. You could also get yourself into more financial debt with that one card and then find yourself in trouble again in seven years (or less). It is always best to include and disclose all of your debts and credit cards.

What About the Joint Debt of Divorced Spouses?

If one spouse is filing for bankruptcy after the divorce has already been resolved, this can become a sticky situation. If your name and your former spouse's name is on a single card that you shared and now only you have the card in your possession, you may have to return to family court for a shared debt declaration before moving forward with the bankruptcy. This involves getting the court's ruling that either you or your spouse takes full responsibility for the debt on the card (you could file the whole card on your bankruptcy if the judge rules for you to carry it) or that it has to be split and paid. In the latter decision, your ex would have to pay his/her half of the card's debt before you could file bankruptcy on your half.

What Is "Full Legal Disclosure"?

Full legal disclosure refers to showing and sharing everything that is pertinent to your case to your lawyer, and possibly the court/judge. In a bankruptcy hearing, you may be required to reveal all of your assets, property and debts in order for the judge to rule on your bankruptcy and absolve you of your debts. It may also be a petition by some of your creditors, who hope to root out funds you have hiding and force you to pay them. Discuss this issue with your bankruptcy attorney after you have officially hired him/her.