Can you NOT include certain credit cards in Ch. 7 - to save them for rebuilding later

[cityish]

I have massive credit card debt and am probably going to have to file for Chapter 7 at some point.

If and when I file BK, can I withhold two particular credit cards from the bankruptcy and maintain them in good standing?

The reason I ask is because I was hoping that if I could maintain them, it would help me rebuild my credit after the bankruptcy.

The two credit cards in question are Macy's store card (not a Visa); and a Juniper Master Card. Both have low balances and low payments and I can manage them right now.

[AngelinaCat]

No, you have to include all of your creditors.

Also, these CC accounts have Parent Companies as owners. So if one of your CC accounts that you are including in your BK, is owned by a company, such as G. E. Moneybank, and GEM also owns a CC that you are trying to keep, odds are extremely good that once the parent is notified of your BK filing, BOTH accounts will be closed.

Does that make sense? I haven't had my coffee yet....

[Flamingo]

Cityish - AngelinaCat is correct - you have to include all debt in your filing. You cannot withhold any accounts. At filing if you have any cards with zero balances, they will not be included in your filing however the majority of them eventually get cancelled out by the creditor especially, as Angelinacat states, if they are associated in any way with any other creditor in your filing. The best way to rebuilld credit after your filing is learn to live on a cash basis for a while as you will be free of debt and take your time establishing your credit by applying slowly as time goes by. Remember, that Chapter 7 will be sitting on your credit reports for 10 years and usually is a blaring neon light to potential creditors when you apply for credit. The more you apply for credit soon after discharge, and the more denials you accumulate, the more hard inquiries you will also have on your reports on top of the BK. This is all hard truth/fact. Filing BK should not be taken lightly and many find out afterwards it is tough to get credit, buy a car, buy a house, etc.

[cityish]

OK, thanks. I see what you mean.

I think in the meantime I will keep paying the minimum balances on Macy's/Juniper because then that will be two less creditors hounding me with phone calls.

I am also going to do some research and see if I can find out who are the parent companies of these cards. If they aren't connected with any of my other cards in default, then maybe there would be a chance the "good" cards would survive.

I realize your point about living on a cash basis. I have already started doing that for the most part. The last charges I made were for medical payments. I still have more medical payments to go - but since I have defaulted on most of my credit cards, I am now able to make most of my medical payments.

Yikes, what a mess. I never thought this would happen to me. I've raided my 401k and now am penniless, other than my Honda. Thank God for the Honda!

[AngelinaCat]

I so wish you had found this forum before you raided your 401k, as they are exempt. We did the same thing you did, plus liquidate a couple of life insurance policies trying to stay afloat.

Good luck to you.

[cityish]

Thanks, Cat.

Tell me about it!

I am going to be kicking myself over that one for many years to come.

As Suze Orman would say, "stoopid, stoopid, stoopid."

All those years of saving down the drain.

[Flamingo]

Thanks, Cat.

Tell me about it!

I am going to be kicking myself over that one for many years to come.

As Suze Orman would say, "stoopid, stoopid, stoopid."

All those years of saving down the drain.

We made the same stupid mistake with my hubby's 401(k) by BAD advice from another BK forum several months prior to filing. This forum I don't believe was in existence at that time. We tried everything not to file, including doing that to stay afloat but what we should have done was actually file sooner...we all learn the hard way at times....that God I did not touch my 401(k).

[Frogge]

Same here = cashed out 401K to stay afloat. All those years, I agree. But what's done is done. Luckily we kept DH's annuity - we nearly cashed it out to pay CC's also before we came to our senses.

Also in regards to CC minimum payments - we have a Citicard that could raise objection because of all the charges made in June (including vacation). It'll be outside 90 days when we file end of this month, but I am making an above minimum payment on this one this month so there are at least 3 between charges and filing.

I pulled the statement and it has $1800 in charges on the July statement. Plane ticket to my mom's, contact lenses, groceries, and about $600+ vacation-related charges. Since then I've made 3 payments, totalling about $500. We'll see what they do - it'll be interesting.

[AngelinaCat]

I have a TIAA-CREF account that I started in 1977. It now has a nice little nest egg in it. The ONLY reason, we didn't raid that one is because the way the contract was written, I can only access at age 59 1/2, no other way. Period. Otherwise we would have done it.

[PoorGrammyinBK7]

Don't feel alone! Another "stoopid" one here. Took a life insurance loan and then took a big draw on our Home Equity Line of Credit to consolidate credit cards. So we may win the award for biggest dummy!

[shabam]

Macys is from Citibank

Junpier is from Barclays

[cool33097]

My husband and I did the same thing last year. We borrowed from our 401k and now we are suffering because we are paying back.

[Frogge]

Macys is from Citibank

Junpier is from Barclays

Home Depot = also Citibank. Just FYI.

[Paul Kukoc]

Yes, looking back,, the biggest mistake i made was in 2004 rolling a large chunk of unsecured into a secured debt....foward to this year where i was able to file and get out from under about 60 k unsecured, but that debt i secured back in 2005 is holding my back big-time right now...becuase of the stigma of BK.......I i would have just filed back then, maybe i could eat a meal out without having to work 25 hours of overtime just to get by.

[WoodSprite]

Chiming in with another "me too". Wow...it shouldn't make me feel better to see how many of us have made the same mistake, but somehow it does. Well over 100K in a 403(b); 23 years of savings.

Waaahhhh...