When you file bankruptcy you need to list all debts that you owe. Whether this is formal or informal debt, it should all be listed. If the account is at $0 prior to filing, it really isn’t a debt and can be left off your case. That being said, even if you leave a creditor off your case, the account will likely still close after filing.
The reason your credit accounts will close after filing, even if the creditor was not listed in your case, is because most creditors will still receive notice of a bankruptcy. Most creditors have alerts set up with credit remarks (like filing bankruptcy, credit change, etc.) and will shut down your ability to use a card, when the bankruptcy is filed. Therefore, it doesn’t make sense to pay down your cards right before filing to $0 in hopes they can be excluded from your case and kept after filing. Always speak with an attorney first, but typically, it is better for you to let your credit accounts close with the bankruptcy and work on credit repair when your discharge has gone through.
At LifeBack Law we offer a free credit repair program after discharge, where we provide steps to improve your credit post-bankruptcy.
No matter where you are in Minnesota, if you have any questions about bankruptcy, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!