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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 17872
Experience:  B.A.; M.B.A.; J.D.
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What is the legal definition of a creditor? Lets say I have

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What is the legal definition of a creditor? Let's say I have a gas credit card but there is a $0 balance. Is the company technically a creditor in a bankruptcy filing?
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Question: What is the legal definition of a creditor?


Response 1: A person or an entity that you owe money to.


Let's say I have a gas credit card but there is a $0 balance. Is the company technically a creditor in a bankruptcy filing?


Response 2: No, because you do not owe anything on the card. So, the gas card should not be listed on your Schedule.
Customer: replied 4 years ago.

That being the case, typically, what would the status be regarding these type of accounts (ones with no balance and thus not reported on the Schedule)?


 


Would they likely remain open?


 

That being the case, typically, what would the status be regarding these type of accounts (ones with no balance and thus not reported on the Schedule)?

Response 1: They would be closed by the issuers once the bankruptcy shows up on your credit report.

Would they likely remain open?

Response 2: No. Once the bankruptcy case is filed and it shows up on your credit report, most of your open accounts would be closed by the card issuers. You are now regarded as a high credit risk and the issuers would promptly close the accounts. Your credit reports are routinely reviewed by each card issuer to ensure that you are still a good credit risk. If no longer a good credit risk the issuer would take appropriate action. In case of knowledge of bankruptcy case filing, the open accounts would be closed.

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