How soon can I file?

[BBW]

What is the time frame for filing? I know I read about 70/90 rules on here and preference payments.

I last used any card I will be discharging on 8/13/09.
I last used a card that I have paid off and will not be discharging on 9/9/09.
I made a payment to pay off that card in the amount of $650 on 9/14/09. Which was almost the last of my savings, excluding the $1500 I have left for an attorney.

So with these dates in mind, I assume I could file 90 days after the date I last used the card which would be around 11/13/09, but if I want to have a chance of keeping that card and the trustee not taking that payment from them since it is "preference" I would have to wait 90 days from that payment date which brings me to 12/14/09. Am I correct? Do I have to wait until 12/14? If so I am going to try to keep making my payments so that I don't get lates on my credit report. Or at least I don't think I'll get lates if I file when I'm current or just under 30 days past due. (sept and oct won't be much of a problem, but my hours are getting cut and nov probably will be a problem). So if possible I was going to make nov payments then not pay anything with a due date after nov 30th and file mid dec. Does that sound right?

[MrSmithster]

kinda depends on what your using them for. if your buying TVs and clothes, that one thing and you should wait at least 90 days, the longer the better, if your buying food, or paying doctor or something, that would be different.

[Amy26]

I would definately discuss the time frame with your lawyer... I was able to file within a month of using cards, 3 months of balance transfers and current payments (none of anything near 600 dollars though). But it could just be I got lucky with no objections and my district being a little more lienient.

When you say "keeping the card" are you thinking you will get to keep your credit card with a zero balance? Aside from the 1 in a 1000 chance that a department store card might squeak through a bankruptcy, there is pretty much 100% certainty that your card will be closed. I even had BoA tell me they were reducing my limit and allowing me to keep the card post bk in a letter no less and then the next day closed the account. LOL.

[MrSmithster]

yep, all my cards with zero balances were closed. even one that i was only an authorized user was closed. i had the same thing happen as Amy except with Cap1. they put my card on "hold" when i filed, lowered my limit to $500, upped the interest to 29.9% and they said to contact them post discharge to take off of hold. when i was discharged, i called as instructed, and was told the acct had been closed many onths ago, right after my 341. it still shows open, on hold, when i view online acct info, strange. my PepBoys card was the only card that made it thru without being closed. the chances of keeping a cc thru your BK is pretty much nil.

[LuciluS]

On the cards you haven't made any charges in the past 90 days or balance transfers, don't pay them. You are wasting your money. It's not going to help your credit score as the BK will show afterwards & it's the Biggie.

I had a balance transfer of $3,500 & our BK Attorney told me to stop paying all CC but this one & to make 3 min. pymts. & to try to add $25 to the payment, which I did for 3 mths. Of course, that was when we thought we would be filing in 1/09.

Income was too high and received my last monthly income check in Feb. 09. So we will be filing 9/30/09 using Mar-Aug. Gross Income and we are way under the median and our DMI is negative $520.

[HakunaMatata]

BBW-

If you're planning to file within the next few months, stop paying on your cards. Your credit score is going to plummet as a result of the BK (this is not indefinite...you can rebuild your score). Creditors don't care if you tried to pay as much as you could. Save the money. Start a nest egg and prepare for your future.

More than likely, your zero balance card will be closed. Very few credit cards survive BK. This was initially an unsettling aspect to me. I've lived my adult life using credit for everything. One card, in particular, I've used for all basic living expenses and paid it off monthly (I treated it as an interest-free loan). Recognizing I won't have access to this card in the future, I've learned to live on cash.

In terms of determining the proper filing date, you will need to assess your purchases. In my case, I had basic purchases (gas, food, household items). My attorney claimed I could file immediately based off my purchases. I questioned him and inquired about the "90 day rule". He provided a section of a law book to substantiate his claim. Not one of my purchases was remotely considered "luxury". You don't really need to worry about preferential payment in your situation. This will be determined by the Trustee and doesn't have a direct effect on you. If your Trustee feels this has occurred, he/she will distribute funds to your creditors.

Filing BK can be challenging...especially when you've "played by the rules" for a long time. This has been the case for me. My credit score was in the upper 700s and it's sinking due to a chosen foreclosure. A few weeks ago, my attorney pulled my credit report and my score had dropped to 689. My projected post-BK score is 589. At this point, a credit score is of little significance to me. I've accepted the consequences of BK (and I look forward to rebuilding). I've learned much about scoring and realize FICO is not a direct reflection of me.

[MrSmithster]

my FICO is 645 after discharge. not as bad as i thought it would be, but i didnt have very many reported lates. and yes lates do count against you on top of your BK. mine showed only 3 lates and i think thats why my score is not sub 600. i wouldnt pay toward the cc's either, but to say late payments dont matter or arent a negative or a concern when it come to credit scores is not correct. it can take a good 50 points off your FICO. now if that matters, it could make a difference, buts it would be up to each filer to judge knowing that lates do effect your credit post discharge.

[Amy26]

Yes, I think the only reason my score is so low is that my mortgages were never listed as IIB throughout the process. I was current on all my debts before I filed except my mortgages. So, up until yesterday they were just sitting there as 61-90 days late ... so, that kinda makes me mad. But oh well!!

[BBW]

my FICO is 645 after discharge. not as bad as i thought it would be, but i didnt have very many reported lates. and yes lates do count against you on top of your BK. mine showed only 3 lates and i think thats why my score is not sub 600. i wouldnt pay toward the cc's either, but to say late payments dont matter or arent a negative or a concern when it come to credit scores is not correct. it can take a good 50 points off your FICO. now if that matters, it could make a difference, buts it would be up to each filer to judge knowing that lates do effect your credit post discharge.

Exactly my point. I have worked in the finance sector for years and while I know my score is going to be distroyed by the bk, the lates will only distroy it further. The less negative info on there the less it will hurt, and if I can dispute some of it and have some of it removed it will help if there isn"t a lot of other negatives like lates. While I am not going to skip my rent, or my daughters nursery school payment to pay the cc to make sure I don't get a late. I am willing to drain the rest of my accounts (excluding attorney fees) to make sure I don't get any lates. Which by my calculation is at most 2 months which is why I am asking when can I file. If it's now perfect, dec ok. But if it's 2010 I might as well stop paying now since I can't afford to pay after novs payments are made. I'm just unsure if they still add up lates after you file until you are discharged in which case I am wasting my time. And while I consider myself an expert on credit and credit repair, I know very little of credit immediately after bk. But usually when I see someone with bad bk credit it's not just the bk that was negative.

While I realize I may lose the card I hope to keep. I think I have decent odds. As long as I don't list it as a creditor (which in my opinion it won't be since they are paid) they won't get a notification from the court. They don't automatically pull my credit ever. If they did they would have been raised my limit to 20k or 30k (prior to recession) like every other card I have. In fact I tried to get a higher limit a few yrs ago and they wouldn't pull my credit without an entire new loan application. They are also the bank I intend to continue to use post discharge and if the trustee takes back my payment from them I'm sure they will go after my accounts at any time (not a problem now, but will be after bk). And since I am limited to what banks I can use since I owe every major one, I'd really like to keep them happy.

[BBW]

BBW-

I've lived my adult life using credit for everything. One card, in particular, I've used for all basic living expenses and paid it off monthly (I treated it as an interest-free loan). Recognizing I won't have access to this card in the future, I've learned to live on cash.

In terms of determining the proper filing date, you will need to assess your purchases. In my case, I had basic purchases (gas, food, household items).

Filing BK can be challenging...especially when you've "played by the rules" for a long time. This has been the case for me. My credit score was in the upper 700s and it's sinking due to a chosen foreclosure. A few weeks ago, my attorney pulled my credit report and my score had dropped to 689. My projected post-BK score is 589. At this point, a credit score is of little significance to me. I've accepted the consequences of BK (and I look forward to rebuilding)..

I've used only credit cards my adult life too. There were a few yrs I'd put 50k a yr on my amex's and pay it off. I'm not trying to learn to use cash but it's hard.

My purchases were for costco, blockbuster, adt security, so I guess I should be fine. My score was in the mid-upper 700s also and just because the banks started cutting my lines in half and maxing me out I'm also in the 680s and except a 100 point drop after filing.

[HakunaMatata]

I've used only credit cards my adult life too. There were a few yrs I'd put 50k a yr on my amex's and pay it off. I'm not trying to learn to use cash but it's hard.

My purchases were for costco, blockbuster, adt security, so I guess I should be fine. My score was in the mid-upper 700s also and just because the banks started cutting my lines in half and maxing me out I'm also in the 680s and except a 100 point drop after filing.

Oh, I remember the good 'ole days of credit card "abuse". I used to take large sums of interest-free money (without any fees) from the cc companies, put the money in short-term CDs, and pay off the credit cards when the 0% rate expired. I was the abuser...and I made money off these companies! The game has since changed.

The driving force for my BK is a money pit house coupled with cc debt that stems from former job loss. My cc debt is manageable; although, BK appears to be the best course of action for me (when compared to a strict foreclosure). This was initially difficult to digest. Unlike many, I can pay off my cards. However, the challenge of paying off my cc debt has increased since cc companies are playing by a new set of consumer-unfriendly rules. As a result of skipped mortgage payments, my credit cards have "periodically assessed my credit worthiness". Consequently, credit limits have been reduced and interest rates have increased.

I've learned much about this "new" industry. Considering my current position, I'm not willing to play the game. I refuse to subject myself to erratic financial conditions. I may return to credit card use post-BK if I can maintain the interest-free upper hand. In the meantime, I'm adjusting to a debit/cash lifestyle and strengthening my position by saving. Yes, this has been uncomfortable. Change isn't always easy. Plus, it has been challenging to suppress the numerous "what ifs" related to a potential need for quick cash (a la credit). A growing savings account aids in disrupting the discomfort.

I've watched my score plummet as I'm building/projecting a sound savings account. I'm grateful I have the BK option to reestablish myself. I started without a credit score and built a great credit score. I'm starting over and I have the option to rebuild.

[BBW]

I'm hoping once I can start building a savings, the lack of credit cards won't bother me as much. But the lack of credit still will. My savings account will probably never have enough to buy a new car in cash or a house.

Good luck to you.

[MrSmithster]

While I realize I may lose the card I hope to keep. I think I have decent odds. As long as I don't list it as a creditor (which in my opinion it won't be since they are paid) they won't get a notification from the court. They don't automatically pull my credit ever. If they did they would have been raised my limit to 20k or 30k (prior to recession) like every other card I have. In fact I tried to get a higher limit a few yrs ago and they wouldn't pull my credit without an entire new loan application

i dont think your odds are very good at all. i dont know where you are getting advise that would lead you to believe that, but i guess if you like wishful thinking over cold hard facts, ok. just search keeping card after filing in this forum and im sure you will find almost everyone had their cards canceled soon after filing. the cc companys dont have to do a "hard" pull on your CR, they do "soft" pulls all the time. as a bank geek you should know that. soft pulls dont show up on your CR. and you can bet more cc's are doing more CR checks today than in the good ole days. as i mentioned, i had a card where i was an authorized user on my moms B of A card. zero bal at filing, not entered on my BK filing, but B of A canceled just me, not my mom, not her husband, not my other 4 siblings, only me, and the stated reason was "chapter 7 filing". i also had 2 other major card, Cap1 and Chase, both with zero bal. both canceled with 2 weeks of filing( Cap1 said it was only on hold, but after discharge i tred to get it off of hold, they said it was canceled 1 month after filing, no notice was ever given to me. i dont mean to sound negative, just wish to inform from experience. good luck

[BBW]

You don't sound negative. You are just sharing your experience. I have seen that there are some people who have cards that aren't closed. It looks like about 10% to me. So my theory is if 10% are left with a card open then 1 out of every 10 cards I have that have a zero balance should stay open. Even if it's 5% keep one. Then 1 out of 20 should stay open. Or 50/50 that 1 out of 10 would stay open. I'm just trying to figure out what the odds are and play them.

[hereforinfo]

If it's a major bank they will close the account. They get bankruptcy notifications from the credit bureaus without having to pull your credit. That's how most people on here have seen their non included, 0 balance cards get closed a week after filing.