Should I close my credit card accounts?

[storesstores]

I already submitted my BK 7 questionnaire to my attorney. I know its going to be about 2 months before they enter everything into the software and get it back to me to review and sign.

Can I and should I close all of my credit card accounts now on my own?

[SinkingFast]

Supposedly, it looks better on your Credit Reports if accts say "Closed by Consumer".

But Closing any CC accts so close to filing BK really will have little effect with perspective Creditors in the future.

Anyone considering giving you a loan on down the road will note the time your accts were closed compared to your fiscal condition. They'll know you were in deep trouble, financially speaking, when your accts were closed.

At this point, it's kinda like trying to save face after you've walked out of the Ladies' Room with your skirt tail tucked your panties.

[storesstores]

I'm just trying to avoid any types of automatic charges that might him my credit cards...

If I close all my accounts now..will that affect my BK in any way?

[lrprn]

I'm just trying to avoid any types of automatic charges that might him my credit cards...

If I close all my accounts now..will that affect my BK in any way?

You should check with your lawyer before doing anything, SS.

One other reason to keep credit card accounts open - if you've had the cards for awhile and there is earlier good payment history on them, that can help with your recovery after bankruptcy by increasing your credit score. If you close the good history accounts, you'll lose the boost they can provide after yiour bankruptcy closes.

[storesstores]

You should check with your lawyer before doing anything, SS.

One other reason to keep credit card accounts open - if you've had the cards for awhile and there is earlier good payment history on them, that can help with your recovery after bankruptcy by increasing your credit score. If you close the good history accounts, you'll lose the boost they can provide after yiour bankruptcy closes.

I am talking about my accounts with balances and that I plan on including in my BK..

Should I close these accounts with balances?

[lrprn]

I am talking about my accounts with balances and that I plan on including in my BK.. Should I close these accounts with balances?

You can't close credit card accounts showing a current balance.

[JRScott]

Don't worry about it, they won't let you close an account with a balance anyway without settling up with them. Let the bankruptcy take its course.

[CityGirl]

I closed several cc's with a balance and was just paying them down. One was Amex, and some capitol ones.

It said no available credit when I closed them ( even though there was ) and I've been paying on them for a year now.

[storesstores]

You can't close credit card accounts showing a current balance.

You sure CAN close credit card accounts with balances.

It will drop your available credit to ZERO..no further charges will be allowed on your card.

You will still owe a balance on it and you will still receive a bill every month...

BUT

your account will be CLOSED...

[SinkingFast]

Sears closed our acct to future purchases several months before we quit paying any Creditors. That was about a year prior to filing BK.

They pulled our Credit, saw how over extended we were, and invoked the Universal Default clause of the Contract.

When I called, I thought they wanted to be paid in full ASAP. The lady in customer service said we could continue paying on a regular monthly basis until we paid in full.

After several months of not paying on our accts, a couple other CCs closed our credit lines with them.

As far as incurring additional charges such at lates, penalties, and interest fees,........... The big banks, such as Citi, Chase, BoA,........ They really wanna add as much in there as they can. It's a bigger tax write off for them when you do file BK.

[CityGirl]

You can't close credit card accounts showing a current balance.

Irprn?? why do you say you can't?

[Granny]

There is a difference between canceling a card and closing an account.

When the credit card companies sent out the notices years ago that they were going to START the universal credit card default, I was given the option to accept the change or cancel my account and continue to pay under the old terms. I closed each and every one that sent that notice. Most of my accounts were "Closed By Customer" and I continued to pay each month. As some of the lower balance cards were paid off, the account was then automatically closed.

I paid until the month I decided to file, so I was only never late with any payments. It only took my attorney a couple of days to file.

[lrprn]

You sure CAN close credit card accounts with balances. It will drop your available credit to ZERO..no further charges will be allowed on your card. You will still owe a balance on it and you will still receive a bill every month... BUT your account will be CLOSED...

No, your account will be CANCELED. We're struggling here because of definitions.

You can only CLOSE an account with a zero balance. You can CANCEL a card with a positive balance, but that reflects negatively on your credit score.

See http://moneycentral.msn.com/content/...rts/P72328.asp and http://money.aol.com/bankrate/credit...29154909990002

[storesstores]

No, your account will be CANCELED. We're struggling here because of definitions.

You can only CLOSE an account with a zero balance. You can CANCEL a card with a positive balance, but that reflects negatively on your credit score.

See http://moneycentral.msn.com/content/...rts/P72328.asp and http://money.aol.com/bankrate/credit...29154909990002

It does affect your score because of utilization. It looks like your cancelled card is maxed out...

[Granny]

It does affect your score because of utilization. It looks like your cancelled card is maxed out...

Funny thing is, I was able to get my home refinanced after I had canceled all my accounts, at a very good rate, but I had to explain why I had canceled all the cards. Of course, back then all my payments were on time and I was working full time.