Secured CC BEFORE Filing BK?

[Medora]

Hi All,
Well we hired our BK lawyer based on a recommendation from a family member who is also an attorney. We're really pleased with him and his advice. Although we haven't used our cc's since October, we DO have our BIZ AM EX which we use only for biz purchases, i.e. charges that are being reimbursed by vendors, and things like airfare.

Our attorney said don't count on that card being around too long--and today when I went to make a plane res., the card was declined...they'd just slashed the limit due to "high balances." Yikes, and I haven't even stopped making other payments yet!

He suggested gettting a secured card NOW. My question--what will happen to that card during bankruptcy?

Thanks for your advice,
Medora

[BKorbust]

I feel you on that! I got a BOA secured card with a $500 limit but the card was cancelled within 10 days of activation. DUH I had BOA Visa CC that was 5 months in arrears for 20K and eventually charged off. I should have known better. I was trying to have a cc I could stick with through the bk. They did return my deposit minus the annual fee.

[TEW]

All of the CCs will be closed when you file

[magyar123]

All of the CCs will be closed when you file

Not necessarily so. If you have a secured credit card but no/zero balance on it you don't even have to list it.
True - if the bank with whom you have this secured card makes a routine spying pull of your credit history - they will see that you filed, but will probably not cancel your card because they're not really out any money if you default on them - they'll just rob you of your secured savings.