Legal Question in Bankruptcy in Missouri

Re: Do I have to list a credit card if I have a 0 balance

Short answer -- Opinions differ but I would not list a credit card that you owe nothing on since I do not classify it as a "debt".

As long as you have not paid more than $600 to any one credit card within 90 days before filing I would take the position that there is no debt and any such zero balance cards would not be listed in your bankruptcy paperwork. Essentially this rule pertaining to payments made within 90 days is a rule to protect creditors from preferential treatment. Bankruptcy law attempts to make sure no creditor is given special treatment in comparison to another creditor(Secured debts like a home mortgage can receive special treatment). For example, you cannot just because you love going to Home Depot, payoff your Home Depot credit card for $650 right before filing bankruptcy in an effort to keep the card. Also it is important to remember that all credit card institutions operate differently. Even though your card has a zero balance when you file the company still may revoke your charging privileges. You must not charge on these cards (or any other card) once you file and after your case is concluded you may attempt to charge on the zero cards and repay them. If the cards are still valid then this can be a good way to reestablish credit.

Your home equity loan would have to be examined by an attorney but I would estimate that you could not be relieved from it. If you owe more on your house than it is worth then you have the option to surrender the property and be relieved of all the debt. Often I recommend this for clients who owe more on their cars then they are worth. Please feel free to call me to discuss your situation in greater detail. ph. (800) 303-0720