Credit Card Use After Filing-Before Discharge

[faith1967]

Hi. I am new here, and just filed for Chapter 7 11/20/2008. I think I made a FOOLISH mistake! Am I in trouble??!!

I have recently used my Capital One card (with a zero balance--$1000 limit) but found out they cancelled the acct for bankruptcy. I was confused because I did not include the Capital One acct in the BK. Capital One told me they found out from a public records search. I have every intent on paying this back, and will send monthly payments, although they tell me I can't use the online payment acct, and will not receive statements, etc.

I am confused, because I thought I could use it to start to rebuild my credit after filing....was I supposed to wait until my case was discharged? I got the card on the advise of my attorney, for the purpose of rebuilding credit.

After filing for bk, and having to pay the attorney $3000, I am struggling, so I once again depended on the credit card to make ends meet.

Am I in serious trouble for this? Can I just make payments on it until it is paid off or will this somehow affect my BK?

A little Background:
I am filing BK as my husband has not been financially supporting the family for several years, due to a substance abuse problem. I call him a "functioning" addict. He works full time, faithfully, even puts in OT, then on pay day, will go spend all of his money. Even when he is "doing well" and not abusing drugs, his money goes to paying back 3 payday loans, and getting his wedding ring out of the pawn shop. so, over the years, I have basically used credit cards to support our family (we have two young children), thinking, and hoping that things would change. Up until last August, I had great credit, except for the debt/income ratio. I guess I was stupid to ever believe that he would change. I am filing by myself, we have no joint accounts, and my car is in my name, his car in his name.

[Stilltheone]

Hi. I am new here, and just filed for Chapter 7 11/20/2008. I think I made a FOOLISH mistake! Am I in trouble??!!

I have recently used my Capital One card (with a zero balance--$1000 limit) but found out they cancelled the acct for bankruptcy. I was confused because I did not include the Capital One acct in the BK. Capital One told me they found out from a public records search. I have every intent on paying this back, and will send monthly payments, although they tell me I can't use the online payment acct, and will not receive statements, etc.

I am confused, because I thought I could use it to start to rebuild my credit after filing....was I supposed to wait until my case was discharged? I got the card on the advise of my attorney, for the purpose of rebuilding credit.

After filing for bk, and having to pay the attorney $3000, I am struggling, so I once again depended on the credit card to make ends meet.

Am I in serious trouble for this? Can I just make payments on it until it is paid off or will this somehow affect my BK?

A little Background:
I am filing BK as my husband has not been financially supporting the family for several years, due to a substance abuse problem. I call him a "functioning" addict. He works full time, faithfully, even puts in OT, then on pay day, will go spend all of his money. Even when he is "doing well" and not abusing drugs, his money goes to paying back 3 payday loans, and getting his wedding ring out of the pawn shop. so, over the years, I have basically used credit cards to support our family (we have two young children), thinking, and hoping that things would change. Up until last August, I had great credit, except for the debt/income ratio. I guess I was stupid to ever believe that he would change. I am filing by myself, we have no joint accounts, and my car is in my name, his car in his name.

You need to wait until DISCHARGE before rebuilding your credit....not after your filing. Once you file, you can't TOUCH your credit, can't do anything "credit-wise" until after your discharge.

Sorry to say, but Capital One had the right to close down your card. You can't pick and choose what cards you want to keep and pay. It's either all or nothing, in a bankruptcy.

If you're counting on the "credit card to make ends meet", what are you going to do after your discharge? Rack the debt up again?

[Noodle Mama]

Yeah, you can't pick & choose creditors to include in BK. You must include them ALL in the BK. If you decide to pay someone after the case is filed, that is your business and you can do so.

When people say "rebuild credit" after BK they mean with new credit accounts.

[Goodrisk47]

So...there's no way to get a $0-balance card, now, and carry THAT thru

Sorry to belabor the point

I think you've already said it clearly enough

Still, I've read of others - maybe they are the one-off's - that have, somehow, been able to carry an account thru, one that was either reaffirmed, or had zero balance, and use that, post-BK, rather than starting the day after discharge

Maybe we hear such stories because they are the gross exception

So...you're saying...in most cases...ain't gonna happen, so, don't apply for the cards you want for AFTER, just BEFORE filing?

[Stilltheone]

Sorry to belabor the point

I think you've already said it clearly enough

Still, I've read of others - maybe they are the one-off's - that have, somehow, been able to carry an account thru, one that was either reaffirmed, or had zero balance, and use that, post-BK, rather than starting the day after discharge

Maybe we hear such stories because they are the gross exception

So...you're saying...in most cases...ain't gonna happen, so, don't apply for the cards you want for AFTER, just BEFORE filing?

Yes, but those accounts that make it through a bankruptcy are few and far between. *Generally*, accounts don't make it through a bankruptcy.

Wait until after discharge, then you can do whatever you choose to with your credit.

[faith1967]

Stilltheone--Thank you for your quick reply, I really appreciate all the comments and advice I can get!!!

I did not include this in my bk because it was new and had never been used. My attorney advised me to get the card in the first place, and I was stupid in making the decision to use it before discharge. I thought anything after filing date was not to be included and was okay for me to use. I have been researching the bankruptcy laws and procedures for months, but obviously made a HUGE mistake here. I'm not challenging their right to close the account, but now, in hindsight, it all makes sense to me, that I should have NEVER used any credit until after discharge--what in the world was I thinking??!!

Now, I'm worried what will happen to me, to my bankruptcy case. Will this negatively affect it, or will I just be responsible for paying it back? How could I have included it when there was nothing to include until after the filing date?

I'm going to have a big problem after bk. Separation and divorce is probably next on my to do list.....otherwise, I will be in the same position a few years down the road.

thanks again to all who reply.

[Goodrisk47]

Yes, thanks

A friend who filed, prior to the big BK law change, advised to go get a couple of cards, now, before filing, and, w/o researching that advice, applied for a few, just last night, and got approve for an HSBC and a CapOne card, geared for lower-credit people (it is frustrating to be in that place - 'cause I'm perfectly paid, for years, now, but that balance to credit limit is the killer) each w/ an annual fee of $59, but nothing else onerous, so, I thought, "Sweet! These will be the two that I'll use for the next upteen years."

Not.

Might be the same companies, but, won't be those particular cards.

Any advice on whether to simply decline them, when they are officially sent, in the mail?

I haven't filed, yet, and am not 100% convinced, but, I am pretty sure that I'm going to have to do so.

[Stilltheone]

Stilltheone--Thank you for your quick reply, I really appreciate all the comments and advice I can get!!!

I did not include this in my bk because it was new and had never been used. My attorney advised me to get the card in the first place, and I was stupid in making the decision to use it before discharge. I thought anything after filing date was not to be included and was okay for me to use. I have been researching the bankruptcy laws and procedures for months, but obviously made a HUGE mistake here. I'm not challenging their right to close the account, but now, in hindsight, it all makes sense to me, that I should have NEVER used any credit until after discharge--what in the world was I thinking??!!

Now, I'm worried what will happen to me, to my bankruptcy case. Will this negatively affect it, or will I just be responsible for paying it back? How could I have included it when there was nothing to include until after the filing date?

I'm going to have a big problem after bk. Separation and divorce is probably next on my to do list.....otherwise, I will be in the same position a few years down the road.

thanks again to all who reply.

A friend who filed, prior to the big BK law change, advised to go get a couple of cards, now, before filing, and, w/o researching that advice, applied for a few, just last night, and got approve for an HSBC and a CapOne card, geared for lower-credit people (it is frustrating to be in that place - 'cause I'm perfectly paid, for years, now, but that balance to credit limit is the killer) each w/ an annual fee of $59, but nothing else onerous, so, I thought, "Sweet! These will be the two that I'll use for the next upteen years."

Not.

Might be the same companies, but, won't be those particular cards.

Any advice on whether to simply decline them, when they are officially sent, in the mail?

I haven't filed, yet, and am not 100% convinced, but, I am pretty sure that I'm going to have to do so.

Faith,

I'm pretty sure you will have to pay it back since it was opened and incurred AFTER your filing. I would definitely call your attorney and explain the situation to them.

Good luck to you in your divorce. It's not an easy road to take. I wish you the best.

Goodrisk,

I would simply not activate the cards and leave it be. You could call and close them as well.

If you use them, so close to filing, it could be seen as fraudulent or that you had no intent on paying them.

Remember, you can NEVER pick and choose which cards to pay and which ones you can't. I would've LOVED to have kept my Disney Chase Visa, but I couldn't. So, now I'm blacklisted.

Good luck to you both!

[daytimer69@hotm]

to make sure I understand. I too am planning on filing for bk sometime next year and ordered about 6 credit cards to start building my credit back up. I have to turn in ALL my credit cards and start over after discharge?

[shabam]

Most credit card companies will cancel any open accounts once they find out you filled regardless of whether you owed them money or not. By filling for chapter 7 it will stay on your credit report for 10 years. There is no getting around it.

Also keep in mind that any debt you acquire after discharge must be paid off. So if shit hits that fan one year after you are discharged because you have racked up CC debt again, you will have to pay it off no matter what. You cannot file for ch 7 for another 7 years.

[relief13035]

My advice to you would be to get your husband into rehab treatment for the sake of your young children. Once he clears his head of his addiction he might straighten up and realize what is about to lose by staying on the addiction path. I hope things work out for you and your family.

[Stilltheone]

to make sure I understand. I too am planning on filing for bk sometime next year and ordered about 6 credit cards to start building my credit back up. I have to turn in ALL my credit cards and start over after discharge?

You won't have to turn them in...they will just be cancelled. Since you haven't filed yet, whatever you charge will just be included in bankruptcy, most likely.

[already710]

Thank you for letting me know, please feel free to email me if problems occur in the future.
simulation credit

[MrSmithster]

My question, why wasnt your husband included in your BK filing? Sounds like you both could use a total fresh start.

[SuzieBK]

I would've LOVED to have kept my Disney Chase Visa, but I couldn't. So, now I'm blacklisted.

Blacklisted by Disney? I didn't know they kept records of bks. ;-)