keeping open credit cards after chapter 7

[corum]

thank you so much for your response(s)on both forms, i appreciated. Sometimes you just need some advise, some answer for a concern that you are not sure and what do you do? go online and try to find some people who experienced the situation you had... anyways Thank you again,

[corum]

ScoreBooster is my user-name on myfico.com and I asked because I also posted in your thread over there. Being active on several forums is nothing out of the ordinary so I just went ahead and asked.

Thank you Ibroke

[IBroke]

Thank you Ibroke

You're very welcome!

[scotthay]

First a story my bk lawyer told me about one of his clients and using credit cards right after filing and then a question about the actual topic here;

The example my lawyer used to explain why you are not to charge anything once you file or you will be in huge trouble was as follows; He had this couple, the wife wanted to file bk (she handled the money and bills) and the husband did not. He told them not to use their cards or open any new credit once he hit the send key on their filing. He got a call from another atty (didn't really follow that part of the story, I think it may have been the trustee, but it was a lawyer friend of his) that his client had run up a 30k debt on their Tiffany's account post filing. He called the wife and she said no way, wasn't them, he asked her to check with her husband and call back. Husband called and denied doing it. He called the other lawyer back and said it wasn't them and must be fraud. This escalated to the point where they got the receipts showing the husbands signature, he still denied it and said it wasn't him. The BK lawyer called to see if there was video because at this point Tiffany's and the other lawyer were sure the client was lying, but my BK atty was still believing them. He ordered the tape and called the couple to tell them it would all be cleared up once the police got the surveillance tape. At this point the husband said "what video?" and then asked what would happen if it had been him. Needless to say he had been lying all along and thought he would get away with it. The BK atty was somehow able to strike a deal between the trustee and Tiffany's to allow the couple to pay off the 30k interest free over 5 years and avoid jail.


My ? about the topic is; I had two store cards (Macy's and Osterman Jewelers) that did not close yet (my discharge was just this week) despite all the other cards including several others with no balance closing right away. I have a zero balance on both and haven't used either in a long time, but had a perfect history with both of them for many years (10+). They are currently helping my credit score because of the age and the high limits (on the Osterman card anyway, Macy's lowered my limit to like $100 or something). Since I haven't used either in a while I am afraid of them auto closing because of inactivity, but I am afraid to use them and trigger them looking at my credit and seeing the BK and closing them anyway. Does anyone have any insight into this or these two creditors in particular?

[justbroke]

You can use them if those creditors chose to leave the accounts open. It happens more often than we think. I have an account with Jareds that remained open. It had a $0 balance when I filed. I'm afraid to use it since a.) I don't need anything, and b.) they could, technically, close the account at any time.

[scotthay]

Yes, I know I can use them now, I am just afraid to use them because they might close them and then my credit will take a hit because they are helping me due to the age of the accounts. Of course if I don't use them then they may auto close due to inactivity. I don't need anything from Ostermans either, but my daughter has a birthday coming up, I could purchase something inexpensive for her there and use the account, I just don't really want it to close because they check my credit since I haven't used it for a while and then they see the bk. I think I may give it a few more months and then try it and see what happens.

[ksgirl38]

Well the way I understood it is that the only time you should use a credit card through the bk process is when you are buying necessities - groceries, gas, etc. I'd ask your attorney to be sure, but unless you can prove that using the card is a necessity right now then I probably wouldn't do it.

I skimmed over this thread so I may have missed details on whether or not you actually filed, but I suppose if you haven't yet you could use the card and then immediately turn around and make a payment to pay the card off. I do this all the time with my Eddie Bauer and Victoria's Secret card (which is about once a year for each), but it should be enough to keep the card open.

[justbroke]

Yes, you missed the details. This is about a case that is already discharged. The original poster (OP) was wondering about a few accounts that "survived" the bankruptcy and those accounts are showing open, a $0 balance, and with a credit limit. This happens pretty often as I too have had 2 accounts survive the bankruptcy.

The question was really about whether, after discharge, you could use those accounts. The answer, of course, is yes. Whether the creditor will keep the account open and/or approve any new charges is the part which can not be answered.