Can you file bankruptcy on only one charge card and leave the rest of your debt in tact?

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Can you file bankruptcy on only one charge card and leave the rest of your debt in tact?

Asked on April 15, 2013 under Bankruptcy Law, Illinois

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Although you could file bankruptcy on only one credit card, this would defeat the purpose of filing for bankruptcy.  All of your creditors with whom you have an outstanding balance should be listed on your bankruptcy.  If you want to pay all of the other creditors, you would indicate on your bankruptcy that you want to reaffirm the debts.  That means you continue making payments. 

If you were to only list one creditor, that would give an inaccurate picture of your financial situation.  You have to list your income and expenses.  If your income and expenses are sufficient to pay that one creditor you want to list without listing all the other creditors, the trustee might not approve / discharge your bankruptcy.  If you list all of your creditors and your income and expense declaration shows insufficient income to pay all your expenses, debts, etc., then your bankruptcy should be approved by the trustee and discharged.

When you file bankruptcy, the bankruptcy court sends notices to all the creditors you have listed.  Your bankruptcy is only effective with the creditors you have listed.


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