Zero Balance Credit Card
Posted: Thu Dec 31, 2009 1:19 am
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)
www.brandspellman.com
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