Credit Card Wants to close and create payment plan

[hailpurdue]

Hello all

I have a BoA credit card, and they have contacted me to close my account and set up a low interest monthly payment plan. I haven't decided whether to file or not, but am concernd that doing this will affect listing them as a creditor and wiping out that debt. I'm considering this because it will allow me to make a couple of payments before I have to decide to file.

Thanks for any advice.

[StartingOver08]

I did this with BOA and with Chase (both OC's, not CA's or JDB's) for a year before filing. There were no issues whatsoever in the BK. In fact, the accounts showed current and pays as agreed right up to filing.

[hailpurdue]

Thanks

Just worried that I was screwing things up by agreeing.
Thank you!

[backtoschool]

The only way this could affect you is if they are the only unsecured creditor you are paying. This could be seen as a preferential payment and the trustee may go after them for the money. But it will not affect you even if that happens.

[music12]

be careful: if you do this now it could re-start the 90-day period that you generally need to wait. if you sign something now and you are determined to already be bankrupt now (which could happen if you file within 3 months), it could be presumed fraudulent.

[aljohnson007]

Agree with Music12. Also, have them give you a copy of the agreement and read the fine print as it may have a default clause that would allow them to raise the interest to 29.9% if you are late on even one payment.

[hailpurdue]

Well, I don't plan on filing for a little bit, I have to do something about my car (worth 19k, only owe 4k and AZ allowance is 5k,) first. As for raising the interest rate, they've already raised it to 24%, so 29% isn't really that big of a deal at this point.

[2manybills]

BofA was the first to start offering me less payments, reduction in the balance (which included all their late charges) and less interest AND they were the first that raised my interest and didn't work with me before I stopped paying. They were our oldest account (1987) and the main reason that pushed us over the edge. Our payments with BofA went from $400 to $900 a month.

Thanks BofA for making me see the light. I realized we would never get out of this hole!