Does it make any sense to close CCs shortly before filing?

[nickifan]

Yet another thought from my always-spinning mind regarding a possible Ch 7 filing....

I have 8 bankcards. Several of them (Chase, HSBC, Discover) have slashed my credit limits and/or raised rates within the past several weeks. (Chase bank apparently also handles the Pier One CC, and took it upon themselves to close the Pier CC out completely because of their concerns about my overall debt. There was a zero balance on Pier One.) I know this overall picture isn't just me; I read accounts everywhere of this happening and percentage rates rising, even for perfect customers.

All such notices have those "opt out" clauses about not accepting the new terms by XX date. I was just wondering if it makes any sense to close them myself to keep the "old" rates, even though I am pretty sure I will be filing early next year? (I am unemployed and have $41K unsecured debt. I am still paying everyone but trying to decide when to stop; my biggest fear is the phone calls....)

Another dumb question: on two cards I took those "credit protection plans" which basically just add $60+ a month to the balance. Any point in at least cancelling those plans...or should I just stay the hell off the phone with ANY creditors at this point?


Thanks so much.

[mtbc]

Regarding the telephone calls -- take a look at USC title 15 chapter 41 subchapter V -- see http://www.ftc.gov/bcp/edu/pubs/cons...edit/cre27.pdf. You tell them in writing not to call you, they have to go along with it, or you can sue them for money. If you hunt around online you can probably find sample letters that are carefully phrased to tell them in the correct language to leave you alone. (Of course they can still sue you to get a judgment to recover what they're owed until you actually file.)

[aljohnson007]

From the info you have provided, it seems you have no options other than to file bk. If you do plan on filing, I would immediately stop all payments and save the money for your attorney. However, before doing that, get as many free consults with bk attorneys as possible. As the saying goes, the best way to get out of the hole is to stop digging. Please provide your total financial situation and you will be amazed at the advice/info you will get on this forum. Wishing you the best.

[Blueboy]

Regarding the telephone calls -- take a look at USC title 15 chapter 41 subchapter V -- see http://www.ftc.gov/bcp/edu/pubs/cons...edit/cre27.pdf. You tell them in writing not to call you, they have to go along with it, or you can sue them for money. If you hunt around online you can probably find sample letters that are carefully phrased to tell them in the correct language to leave you alone. (Of course they can still sue you to get a judgment to recover what they're owed until you actually file.)

Here is a sample letter:

http://www.fairdebtfaircredit.com/Dispute-Letters-example.pdf

[rjones04]

nickifannickifan, there is no harm in keeping the accounts open. Why rush into closing them? After you file, the majority of cc companies will close your account once they receive automated confirmation of your filing. Also..... things to watchout for before/at filing....

1. do not make cash advances/balance transfer/luxury purchases at least 90 days prior to filing is what everyone is saying. In my opinion, if this occurred, i would steer clear 6-12 months at the minimum. The trustee is not your friend and is looking for fraud, etc but if your truthful their is nothing to be concerned with. Regular gas purchases/food is okay but several restaurants tabs, cruises, $300 purchases, etc is a no no prior to filing.

2. Pull your credit report and include ALL accounts with a balance. Some people forget or hide accounts on the petition, a huge NO NO.

3. Discuss ALL matters with attorneys. It's better to tell everything then forget/leave something out. Have documentation with you. I provided 6 months of bank statements and the lawyer says looks like everything will be fine/you was a prepared client