If you’re considering bankruptcy and use a company credit card for work expenses, you might be worried about losing access to it. That’s a legitimate concern—especially if you rely on that card to do your job effectively. The good news? In many cases, you can keep your company credit card through bankruptcy, but you’ll need to understand how these cards work and follow some specific rules.
Let’s walk through what you need to know to protect your employment tools while getting the fresh financial start you deserve.
How Company Credit Cards Work in Bankruptcy
Company credit cards aren’t like your personal credit cards. Most are set up with joint liability, meaning both you (the employee) and your employer are legally responsible for any charges. When you file for bankruptcy, the credit card company will see your name on the account and could decide to close it IF there is a balance on the card—even if your employer is current on all payments.
This puts you in an uncomfortable position. You need the card to travel for work, book client dinners, or purchase supplies. But bankruptcy affects all your credit relationships, including ones tied to your employment.
The reality is that bankruptcy is about getting control of your financial life again, not making your work situation harder. Understanding how to navigate this particular challenge can make all the difference.
The Two Rules for Keeping Your Company Card
If you want to keep your company credit card when filing bankruptcy, you need to meet two important conditions on the day you file:
1. The Balance Must Be Zero
Your company credit card needs to have a $0 balance on the day you file your bankruptcy petition. This is critical. If there’s any outstanding balance—even if your employer typically reimburses you—that debt becomes part of your bankruptcy case and must be listed.
Why does this matter? Because bankruptcy automatically includes all debts, even ones you plan to pay back or that someone else usually pays. If your company card has a balance when you file, then it’s a debt and the credit card will get included. If there isn’t a balance, then it isn’t a debt and need not be listed on the bankruptcy paperwork.
Make sure you’ve submitted all expense reports and received reimbursement before filing. If your employer pays the card directly, confirm that all charges have been paid and the account shows zero.
2. No Other Debts With That Lender
Here’s where things get a bit more complicated. Even if your company card has a zero balance, you need to make sure you don’t owe the same credit card company money on any other accounts.
Let’s say your company card is through Chase, but you also have a personal Chase credit card with a $15,000 balance that you’re including in your bankruptcy. Even though these are separate accounts, Chase will see that you’re discharging debt owed to them while trying to keep another account open. In most cases, they’ll close all accounts associated with your name—including the company card.
Credit card companies have internal policies about this, and they’re generally not interested in continuing any relationship with someone who’s just discharged debt to them. It’s not personal; it’s simply their risk management approach.
What Happens If You Can’t Meet These Requirements?
If your company card has a balance or you have other debts with that lender, you’ll likely lose access to the card. But this doesn’t mean you’re out of options or that your job is at risk.
Talk to your employer before you file. Most companies understand that financial difficulties happen, and they may have alternative arrangements:
- Open a new card after filing: It is always possible for the employer to give you a new card if the existing one gets closed
- Direct billing: Your employer might switch to having vendors bill the company directly
- Petty cash or advance system: You might receive advances for expenses and submit receipts for reimbursement
- Different card: Your company might be able to issue you a card through a different provider that you don’t owe money to
- Corporate account only: Some employers can set up cards where only the company has liability, removing your name entirely
Remember, bankruptcy doesn’t mean you’re irresponsible—it means you’re taking legal action to address your debts and move forward. Most employers would rather work with you on expense solutions than lose a valuable employee.
Should You Keep a Company Card During Bankruptcy?
Even if you can technically keep your company card, it’s worth asking whether you should. Here’s what to consider:
The upside: Keeping the card means your work routine doesn’t change. You won’t need to have potentially awkward conversations with your employer about your financial situation, and you can continue handling work expenses the way you always have.
The downside: Having any active credit account during bankruptcy requires careful management. You’ll need to be meticulous about keeping the balance at zero and ensuring your employer pays promptly. Any misstep could complicate your bankruptcy case or put you back in debt immediately after receiving your discharge.
For most people, the temporary inconvenience of alternative expense arrangements is worth the peace of mind. Your bankruptcy gives you a chance to simplify your financial life—fewer open credit accounts means fewer things to worry about.
What About Getting a Company Card After Bankruptcy?
If you lose your company card or don’t have one when you file, you might wonder about getting one later. The good news is that company credit cards are typically easier to obtain after bankruptcy than personal cards because the primary liability rests with your employer.
Many people are surprised to learn that credit rebuilding can start within weeks of filing bankruptcy, and employment-related credit needs are often some of the first to be addressed. Your employer’s creditworthiness matters more than your recent bankruptcy when it comes to company cards, especially if they’re set up as corporate accounts with employee cards.
The Bigger Picture: Your Financial Fresh Start
Worrying about a company credit card is understandable, but don’t let it stop you from getting the debt relief you need. Medical bills, credit card debt, and other financial pressures won’t resolve themselves, and the stress of overwhelming debt affects every part of your life—including your job performance.
Bankruptcy exists precisely because our legal system recognizes that people need a way to address insurmountable debt and move forward. It’s not about what you’ve done wrong; it’s about what you’re doing right by taking control of your financial future.
If you’re concerned about keeping your company card or any other aspect of filing bankruptcy, the best step is to talk with an experienced bankruptcy attorney. They can review your specific situation, explain exactly how your company card will be affected, and help you plan the timing of your filing to minimize disruption to your work life.
Take the Next Step
Bankruptcy doesn’t have to be complicated or scary. At Walker & Walker Law Offices, we’ve spent over 40 years helping people just like you navigate these decisions with clarity and confidence. We’ll help you understand exactly what will happen to your company credit card, your other accounts, and all your debts.
Your fresh start is closer than you think. Contact us today for a free consultation, and let’s talk about how bankruptcy can help you move forward—without sacrificing your ability to do your job effectively.
