Legal Question in Bankruptcy in California

Re: ''Excluding Credit Cards From Bankruptcy''

If you have a zero balance with a creditor, then they are not a creditor and, therefore, you don't need to list them. However, there is no benefit or detriment, in general, to listing or not listing them. I'm not sure why clients get this idea in their head that it makes any difference either way. In general, credit card companies will cancel your credit card upon the filing of a bankruptcy regardless of whether you owe them money. Not all of them do this, but most do. On the other hand, it is relatively easy to get new credit cards after you file a bankruptcy. Moreover, if you pay down more than $600 on a particular debt within 90 days prior to filing a bankruptcy, the Trustee in your case will just sue that creditor to recover the money as a preference, thereby defeating whatever the purpose of repaying them was. Hope this answers your question. If you desire representation, feel free to visit my webpage and give me a call; I will be happy to assist.