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Zero Balance Credit Card
In my opinion, consumer credit cards that have a zero balance at the time of
filing need not be listed on Schedule F because, as you point out, there is
no debt.
Per 101(12), a "debt" means liability on a claim.
Per 101(5), a "claim" is either A) a right to payment..or B) a right to an
equitable remedy for breach of performance if such breach gives rise to a
right to payment.
Owing zero to a credit card company falls into neither category.
Also, in my opinion, a consumer credit card with a zero balance is not an
asset. The available credit is a potential source that can be used to
acquire an asset (and, of course, an off-setting liability).
A credit card with a credit balance, on the other hand, would be an asset
that needs to be listed in Schedule B.
Donny Brand
Brand & Spellman PC
3836 E. Anaheim St.
Long Beach, CA 90804
562-438-7500
888-99-BKRPT (888-992-5778)
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101(12) The term "debt" means liability on a claim.
Is a credit card with zero balance a liability as meant by 521(a)or, for that matter, is it at an asset?
Has anyone treated a zero balance card as neither?
Any thoughts about or experience with this?
Happy New Year to all.
John Greifendorff
Greifendorff Law Office
333 City Boulevard West
Suite 1700
Orange, CA 92868
714 / 937. 2063
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