Many bankruptcy filers wonder whether they are entitled to keep one or several credit cards for emergencies backup. Generally, you might not for the reason that your credit cards will be cancelled anyway, since you file the bankruptcy. The credit card issuers have a tendency to punish their card holders for filling any kind of bankruptcy; most of the time, the credit cards of bankruptcy filers will be terminated once they file for a bankruptcy. But there are some exemptions where terms and conditions will be applied to allow the bankruptcy filers to continue holding their credit cards.

There are some exceptions applicable only to chapter 7 bankruptcy filers.  Some credit cards’ issuers will let you keep your credit card but with a sized down credit limit, and in response you need to repay them for some of your debts.  In fact, some companies will automatically send you or your attorney a proposed reaffirmation agreement, which is a contract between you and your creditor that you will pay all or a portion of the money owed, in spite of the bankruptcy filing, in return for a minimal amount of new credit.   

Beside the sized down credit limit, a chapter 7 bankruptcy filers might be allowed to keep their credit cards by some of their card issuers but the interest rate will be revised to a higher than the normal interest rate.  However, if you are able to always pay your credit balance in full each month, you will not incur a finance charge, and the high interest rate will not hurt you.   

Other than chapter 7 bankruptcy filers, all credit cards must be given up at the filling of bankruptcy. Athough, there are credit card holders who have maintained their credit cards at zero balance for a long time and don't report their credit cards during the filing. This action could be thought about to be illegal since in effect your preference on one creditor (your credit card issuer) over other creditors, because repayment ordination is a trustee job.

If you're not eligible to file under chapter 7 or even you are filling under chapter 7 but you did not manage to get approval from your credit card issuers to keep your credit cards, the best thing for you to do is report all your credit cards and give them up.  In most cases, your will have to wait until the bankruptcy filing has cleared and then work with a debt management consultant to rebuilt your credit gradually.  For sure, in the months and years after the bankruptcy filing, you might not qualify for top-tier or even middle-tier credit cards.   

But with some efforts and fiscal plan such as paying your monthly credit balance in full and on schedule will help you to rebuilt your good credit record and you could start to erase the stigma of the bankruptcy; and ultimately put you back in the realm of good to high credit score.   

In summary 

Generally, bankruptcy filers need to give up their credit cards.  However, there are some exceptions for bankruptcy filers in chapter 7, the debtors who file their bankruptcy under chapter 7 may be allowed to keep their credit cards with some terms and conditions.