You can exclude a credit card from Chapter 7 if you keep paying it, but the card issuer can still close the account
When you file Chapter 7 bankruptcy, you must list every debt you owe — including every credit card. You cannot straightforward leave one off the paperwork. However, you can reaffirm a credit card debt, which means you sign an agreement to keep paying it even though the bankruptcy would normally wipe it out. The card issuer then decides whether to let you keep the account open.
The key difference: excluding a card from your bankruptcy filing is not allowed. Reaffirming one is allowed, but it is voluntary on both sides. The issuer has no obligation to let you reaffirm, and many will close the account anyway. If you want to keep using a card after Chapter 7, reaffirmation is the only legal path — but it is not may provide to work.
Key Takeaways
- You must list all credit cards on your Chapter 7 petition; omitting one is fraud and can result in criminal charges or dismissal of your entire case.
- Reaffirmation is a written agreement to repay a debt that would otherwise be discharged, and requires the creditor's consent and the bankruptcy court's approval.
- Most credit card issuers will not reaffirm; they often close accounts instead and may sell the debt to a collection agency.
- If you reaffirm, you lose the bankruptcy protection on that debt and can be sued if you stop paying.
- Keeping a card open without reaffirming is not an option — the discharge eliminates the debt, and using the card afterward can be treated as fraud.
Why you must list every credit card on your bankruptcy petition
The bankruptcy court requires you to disclose all debts, assets, and financial obligations. This is not optional. Leaving a credit card off your petition — even if you plan to keep paying it — is considered fraud. The court can dismiss your entire case, and in rare instances, you could face criminal charges for bankruptcy fraud.
The trustee assigned to your case reviews your petition to identify which debts can be paid from your assets and which will be discharged. If you hide a debt, you are interfering with that process. Credit card companies also receive notice of your filing and will report the debt to the court if they see it is missing from your list.
How reaffirmation works and what it means
Reaffirmation is a formal agreement between you and the credit card issuer. You sign a Reaffirmation Agreement stating that you will continue to pay the debt even though Chapter 7 would normally erase it. The agreement must be filed with the court and approved by a judge before it becomes binding.
Once a reaffirmation is approved, you are legally bound to pay that debt. If you stop paying, the card issuer can sue you just as if you had never filed bankruptcy. You lose the protection that bankruptcy gives you. This is why courts often require you to show that reaffirming makes sense for your budget — a judge can refuse to approve a reaffirmation if it appears you cannot afford it.
The credit card company must also agree to reaffirm. They are not required to do so. Many issuers straightforward close the account and discharge the debt along with everything else in your bankruptcy, even if you ask to reaffirm.
What happens if the card issuer refuses to reaffirm
If the issuer declines to reaffirm, the debt is discharged when your Chapter 7 case closes. You are no longer legally obligated to pay it. However, the account will be closed, and you cannot use the card.
Some issuers will sell the discharged debt to a collection agency. The agency may then contact you to try to collect, but they cannot sue you because the debt was discharged in bankruptcy. If they do sue, you can raise the discharge as a defense in court. Paying a discharged debt is voluntary — you are under no legal obligation.
A few card issuers will reaffirm without requiring you to pay a lump sum upfront, but this is uncommon. Most either refuse entirely or demand that you pay down a portion of the balance before they will consider reaffirmation.
The risks of reaffirming a credit card
Reaffirming means you are choosing to owe money that bankruptcy would have erased. If your financial situation worsens after your case closes, you cannot go back and undo the reaffirmation. You are stuck with the debt.
You also lose the automatic stay protection. During your bankruptcy, creditors cannot sue or collect. Once your case closes and a reaffirmation is approved, the card issuer can pursue you for nonpayment just like any other creditor. They can sue, garnish your wages, or freeze your bank account.
Additionally, reaffirmed debts appear on your credit report as active accounts. This can affect your credit score and your ability to borrow in the future. A discharged debt that you do not reaffirm will also appear on your report, but it will show as discharged, which is generally viewed more favorably by lenders than an active reaffirmed debt.
When reaffirmation might make sense
Reaffirmation is rarely the right choice, but there are narrow situations where it could be worth considering. If you have a card with a very low interest rate and a small balance, and you are confident your income is stable, reaffirming might help you rebuild credit faster than waiting for the discharged debt to age off your report.
Some people reaffirm a card to keep a business relationship with a bank where they also have a checking account or other services. However, most banks will not require reaffirmation to keep those accounts open.
Before you decide to reaffirm any debt, talk to your bankruptcy attorney. They can review your budget and help you understand whether reaffirmation serves your long-term financial goals or straightforward puts you back in debt unnecessarily.
What you can do instead of reaffirming
After your Chapter 7 case closes, you can rebuild credit without reaffirming old debts. Many people get a secured credit card — one backed by a cash deposit — which does not require you to reaffirm anything. Secured cards report to the credit bureaus and help you establish a positive payment history.
You can also become an authorized user on someone else's credit card account. If that person pays on time, the account activity may be reported under your name and help your credit score.
Another option is to wait. Discharged debts age off your credit report after seven years from the date of discharge. Your credit score will improve naturally over time, especially if you pay all new obligations on time and keep credit card balances low.
Frequently Asked Questions
Can I keep paying a credit card without reaffirming it?
Legally, no. Once the debt is discharged, you have no obligation to pay it. If you send payments anyway, you are voluntarily paying a debt that no longer exists in the eyes of the law. Some courts view this as problematic because it can be seen as an attempt to circumvent the discharge. Your bankruptcy attorney can advise you on your specific situation.
Will the credit card company contact me after my bankruptcy closes?
Possibly. If the debt was discharged, they cannot sue you or report you to a collection agency. However, they may send letters asking you to reaffirm or offering to settle. You are not required to respond. If you do respond, be careful not to make any statement that could be interpreted as a promise to pay, as this might revive the debt.
Does reaffirming help my credit score?
Reaffirming can help your credit score if you make all payments on time, because it shows active, on-time payment history. However, the benefit is usually modest and comes with significant risk. A discharged debt that ages off your report will eventually help your score without the risk of owing money.
What if I want to reaffirm but the judge refuses to approve it?
If a judge denies your reaffirmation agreement, the debt is discharged and you cannot owe it. The judge typically refuses approval when the reaffirmed payment would strain your budget or when the debt is so large relative to your income that repayment seems unrealistic. You can still rebuild credit through other means.
Can I reaffirm one card and discharge another?
Yes. You can reaffirm some debts and let others be discharged. However, you must list all debts on your petition. You then choose which ones to reaffirm before your case closes. The ones you do not reaffirm are discharged automatically.