Will a corporate credit card be cancelled when I file bankruptcy?

Most if not all credit cards can be expected to be eventually canceled once bankruptcy is filed. Whether a corporate credit card will be cancelled depends on how that account is structured and potential employer policy.

Corporate cards can be legally structured in several ways, each resulting in different appearances on one’s credit report and impact on the card once a personal bankruptcy is filed.

When a corporate card is issued to the employee, but the employer company is legally responsible for the account (a true corporate card), these cards typically do not appear on an individual’s credit report and may not necessarily be listed on the bankruptcy petition. Even so, this corporate card may be cancelled (or access limited) once bankruptcy is filed due to the card issuer, i.e., the bank, cross-referencing the bankruptcy filing against the account. All major banks routinely run national bankruptcy searches on the bankruptcy court filing system, make a match via a debtor’s Social Security number and may cancel the card. Additionally, even if the bank does not cancel the card, some employer policies may require certain creditworthiness to maintain a corporate credit card. Employees may request a new card be issued post-bankruptcy in these circumstances.

Alternatively, corporate cards can also be applied for by the employee and guaranteed by the employer, in which case these cards do show on the individual’s credit report. These corporate cards are essentially joint credit accounts between the employer and employee and are more likely to be listed on the bankruptcy petition if a balance is owed. Whether a balance is owed or not, these cards like all other credit cards will be cancelled immediately upon filing of bankruptcy. The balance owed would be discharged in the individual’s bankruptcy yet still owed by the employer. The employee may not be eligible for a new joint corporate card soon after bankruptcy but may inquire about obtaining a true corporate card (see above), similar to an authorized user on a new account.