Filing bankruptcy can have a big ripple effect on your personal and professional life for quite a while. You will most likely have a lot of questions about what you are and are not permitted to do. Some of those questions may understandably pertain to your credit cards. Are you allowed to use them while you are in bankruptcy?
The rule about this is pretty cut-and-dried. One expert states, “You typically can’t keep credit cards if you declare bankruptcy.” That also applies to any that have no balance. You must include them in your bankruptcy filing. This probably doesn’t surprise you. However, what do you do about a company card that you use for work?
How are company-issued credit cards handled in an employee’s bankruptcy?
Your employer may have given you a company credit card to use for business lunches or dinners, travel and other things related to your job.
There are three categories of company credit cards:
- One that the employee pays the bill for each month, which their employer then repays.
- One where the monthly bill is divided between debts paid by the employer and personal charges by the employee
- One the employer pays (and the employee does not use for personal reasons)
When are you responsible for listing a company credit card in your filings?
You have to include it in your bankruptcy filing “if you have any personal liability on it.” If you had to apply for a company credit card, then you do have responsibility for it. Your company’s HR personnel can answer questions you might have – but it’s definitely better to be proactive about this.
Get solid information about your bankruptcy proceedings
Know exactly what you need to do and are responsible for if you declare bankruptcy. Have an experienced person assist you with the process to avoid needless delays or complications.