Question about a credit card.....

[moonandstars]

I want to buy some new furniture. The company I buy from is offering no payments till 2010. It will be under 5,000$ I do not want to file this card on my bk because I would like to pay it off. Can I purchase furniture and not file on it and keep paying them? or am I going to have to reaffirm it? I have all the intentions of paying this creditor back, my whole house is furnished by them. =) I am also not asking to be flamed or talked down. I just want some real answers from honest people Edit: is this going to ruin my bk case if I do this?

[keepmine]

You are required to list all of your creditors when you file.
Buying $5K worth of furniture on credit on the eve of bk will raise some eyebrows should you try and reaffirm the debt. Your lawyer have to sign a statement that they believe the reaffirmation will not cause undue hardhip. He/she may have reservations about doing that.
That said, nothing in the bk code says you can't repay a creditor post bk.
Don't encumber a fresh start by obligating yourself to $5K worth of debt on something that will have depreciated sharply by 2010.

[ameliabedilia]

I am certainly not going to flame you, but bankruptcy is about habits that need changing. If you are filing bankruptcy you really are not in any position to buy all new furniture. This is one of the situations where you might look at yourself and see that these types of buying habits might be what got you into trouble in the first place. I would certainly not want to start out post bk with debt. I also think that the trustee would take a long, hard look at that and think about denying a reaffirmation. Don't waste your fresh start!

[WantToBeDebtFre]

Don't do it. In 2010 when you start to make payments it will be a huge bummer to be making payments on old furniture. I did it the same thing and it was too many purchases like that that caused me to go into bankruptcy in the first place. I know it sucks to hear us all disagree with you but maybe you could save up the money and pay cash for it. You'd feel great knowing you had new furniture that you actually paid for.

[moonandstars]

Well, thats the thing, it is interest and payment free till 2010. BUT you can make payments throughout the years. I feel that we will be able to pay it off before then since it will be about $1500. Putting a a few hundred every few months from saving shouldn't be too bad. I just want to have some new stuff now before I can't get it at all. A lot of places don't do payment plans unless it is on credit. My furniture is already 6 years old. By the time I save up for new furniture it will be 8-9 years old. We are going from a 2200$ a month payment to a 1300$ a month mortgage payment. We got rid of a financed car, so already we are changing habits. Sad thing is that after all those changes we still qualify for bk7.

[JollyGG]

Well, thats the thing, it is interest and payment free till 2010. BUT you can make payments throughout the years. I feel that we will be able to pay it off before then since it will be about $1500. Putting a a few hundred every few months from saving shouldn't be too bad. I just want to have some new stuff now before I can't get it at all. A lot of places don't do payment plans unless it is on credit. My furniture is already 6 years old. By the time I save up for new furniture it will be 8-9 years old. We are going from a 2200$ a month payment to a 1300$ a month mortgage payment. We got rid of a financed car, so already we are changing habits. Sad thing is that after all those changes we still qualify for bk7.

Have you switched over to a no credit lifestyle yet? You may be surprised at the end of the month to see how little is actually left. Besides good credit comes quickly after BK. About six to a year months out of BK I had a score in the mid 600 range. I have a balance close to the limit on one card. When I pay that off after the beginning of the year I expect my score to go over 700. I agree with the wait and save people.

[SinkingFast]

Have you switched over to a no credit lifestyle yet? You may be surprised at the end of the month to see how little is actually left.

Ditto's!!

You need several months of living "Cash and Carry" to see how much you're really gonna have left over.

You'll probably be surprised that real life numbers don't match projections figured on paper.

Something always comes up.

Car repairs. Unexpected medical expenses. Kids come home from school needing field trip or activities fees.

Live at least 3-4 months Cash only and see if you're really gonna be able to save as expected.