Chapter 7

• Chapter 7 is a type of bankruptcy pertaining to consumers. This type of bankruptcy is considered when the petitioner does not have any assets that can be liquidated to pay the owed debt. Chapter 7 bankruptcy results in a consumer's debt being eliminated and allows the consumer to start fresh. The Chapter 7 bankruptcy process begins by the petitioner filing a bankruptcy petition with the court.
  
  

The Petition

• Petitions are a legal document used when requesting the court to intervene and make a determination on an issue. This can be child support, divorce, judgments, bankruptcy and more. A bankruptcy petition is a very long document that details your entire financial situation. You are required, by law, to be completely honest and list all details about your finances to include income, expenses, debt and assets.
  
  

Listing Debt

• Your gas card, as well as all other debt, must be listed on the bankruptcy petition even if you wish to keep the card. The only exception would be if your gas card did not have a balance and has not had a balance for several months. Paying off the gas card prior to filing the petition can be seen as preferential treatment to this creditor and can cause issues with your bankruptcy. The bankruptcy petition will ask if you have made any payments to any creditor in the previous six months.
  
  

Reaffirming Gas Card

• Inform the trustee assigned to your case that you wish to keep the gas card. The trustee will determine if you can keep the card and can exclude the card from the bankruptcy proceedings. You would then contact the gas company and request to reaffirm the debt. Complete any required paperwork and if approved by the trustee and the lender, you can keep the gas card and continue to make payments.