Keeping Credit Cards in BK 13? Keep one and Reaffirm? (or not) just made payment.

[jr001]

Hi,

I've stopped paying all of the other credit card accts. They have gone to or are in process of going to collection. Except for 2 acct. One is Walmart, only a $500 limit. I owe almost that. But, the acct is still open and I had to decide quick to pay or not. I paid $50, two payments were do. I had read where some people reaffirm certain accts.

Was this right to do? I thought maybe having one acct. reporting favorable during and after the BK process would be a positive. Yet, after, as always...I thought, wait a minute. I also read you can not use credit in BK. So, then if i stop using the acct for 5 years how would it stay open? I pay at 100% put gain what good?

Any opinions or experiences with this. Did I just through away $ that could have gone in 6 or more different directions?

[justbroke]

I don't know any Judge or attorney that will allow you to reaffirm a revolving charge card debt. (Albeit there may be some... I don't think it's prudent.) You do not have a choice of what accounts to include, which I think you understand. What I think that you don't understand is that the creditors are likely to close the accounts anyhow. Almost none of the revolving (unsecured) credit card companies allow a reaffirmation.

Credit Unions are special and there are some special cases, with cross-collateralization, where reaffirmation "might" be necessary to preserve other encumbered property.

If you are entering into a Chapter 13, you should have absolutely no credit cards. (I make an exception for an employer-liability travel/charge card used for business travel only.)

Learning to live without credit, is actually pretty cool! (I am post Chapter 13/Chapter 7 and while I use credit for employment related travel, I try to buy things without credit. I guess the exception could be major purchases, such as an automobile.)

[lillymarlene]

Hi, welcome. As I understand it, you should not use any cards 90 days before your bk filing date. After filing, most of your cards will be closed by their credit grantors. A credit union where I had a small loan, even closed my debit card that was attached to my checking account. Then also, as you said, you may not incur any new debt while in a chapter 13, so even if a card was somehow still "open" you probably shouldn't use it.

So, you're right you might as well use any extra money for those "6 different directions."

[jr001]

Thank you for your responses. It makes sense. I get confused I did read people reaffirm debts and it must be secured debts only, like real estate. I have 2 accts. still open. Oh well, wish I didn't pay the $50. It will just be lost in interest until I file for BK13.

[angel7821]

jr001 don't beat yourself up about the 50.00 payment. We have all made mistakes and we learn sometimes the hard way from them. Best of luck to you in your Chapter 13 journey.

[SMinGA2]

Reaffirmations only happen in ch. 7 filings - and even then your attorney should not let you keep something like an unsecured account. Even if you did reaffirm in that situation, there is no guarantee the creditor would leave the account open.

[Mayo]

If you make it through discharge, remember who your accounts were with. For example if you had a Bank of America credit card that was included in your BK and you apply for a store credit card, that is backed by Bank of America they 'll remember who you are and you won't get approved.