A Chapter 7 bankruptcy is one of the most foolproof ways to instantly get out from under the burden of unsecured debts, like those associated with most non-store credit cards (obviously, secured cards are an exception).  Nonetheless, many people wonder about whether or not they can keep a credit card or two while filing for bankruptcy.  They may want to have some sort of card in their name after their other debts are discharged or they may worry that their bankruptcy will prevent them from getting any credit for the foreseeable future.

It is possible to reaffirm credit card debt in a Chapter 7 bankruptcy.  “Reaffirmation” refers to the process whereby a debtor agrees to (re)payment terms with the creditor on a debt instead of having it discharged in the bankruptcy.

Reaffirmations are more frequently used for large, secured debts (like your house or a car).  In those situations, it may make more sense for the consumer to maintain the debt than to deal with having the security interest (the collateral) taken from them in lieu of payment.

With unsecured debts, there’s nothing standing in the way of making them disappear completely without any repossessions, but it’s also possible to attempt to reaffirm those debts.

Notice the word attempt.  I used it very intentionally.  You may desperately want to keep your favorite credit card after a bankruptcy, but the lender is under no obligation to allow you to do so.  Many card issuers immediately close accounts when they discover a bankruptcy is in the works and others may find it more convenient to just cut your loose than to try to maintain you as a customer.  Additionally, the bankruptcy judge who hears your case may decide that you’re in no position to maintain the debt, disallowing your request for a reaffirmation.  On top of that, there’s the very real risk that the card company may “play nice” for awhile after a reaffirmation, only to eventually close the account or cut your limits.

In almost all cases, bankruptcy attorneys advice against reaffirmation of unsecured credit card debt.  The Ginsberg Law Office states:

Sometimes a client will ask me to request a reaffirmation agreement from a credit card issuer because my client wants to maintain his account or use the credit card account to rebuild his credit.  Over the years I have come to recommend reaffirmation of a credit card debt less and less.  I do not have much faith that a credit card issuer will keep a reaffirmed account open, nor do I think this type of reaffirmation will really help much in re-establishing credit.

You’ll notice that explanation of the arguments against reaffirmation tackle the often worrisome issue of obtaining credit in the future.  Attorney David Lassman backs the idea that keeping credit available in the aftermath of a Chapter 7 via reaffirmation is unnecessary. When asked about the issue, he noted:

They can go out and get a secured credit card right after they file bankruptcy anyway. Why should they saddle themselves with the old debt?  The only thing I can see a client reaffirming is a house or a car. Period, end of story. And then, only if there is equity and they have the ability to pay. If there’s no equity, it becomes very difficult. I wouldn’t consider anything else.

So, can you reaffirm a credit card debt as part of a Chapter 7 bankruptcy?  You can try.  The more important question is whether you should make such an agreement.  The expert consensus is a chorus of voices yelling “NO!”