Have a Question...

[shortyg]

I have a $500 secured credit card right now that I have had for the past year with on time payments. It is currently maxed out. I am going to be filing chapter 7 soon and was looking for advice on what I should do about the card.

Should I reafirm the cc? Should I just include it in bk and walk away?

If I IIB w/o reafirmming, what happens since I had to put an initial $500 deposit to get the card (got it to try and build credit, but got slammed with other things and have to file).

[scorpion35]

I have a $500 secured credit card right now that I have had for the past year with on time payments. It is currently maxed out. I am going to be filing chapter 7 soon and was looking for advice on what I should do about the card.

Should I reafirm the cc? Should I just include it in bk and walk away?

If I IIB w/o reafirmming, what happens since I had to put an initial $500 deposit to get the card (got it to try and build credit, but got slammed with other things and have to file).

i am sure u will have to say good bye to the $500

[lrprn]

I have a $500 secured credit card...

Take a look at your original cc agreement. I'm pretty sure you'll find a clause there that states if you include the card in a bankruptcy or stop payments, the down payment to start the card is forfeit.

[btbeme]

Don't reaffirm, and they will close your account and take your deposit.

Reaffirm, and they will most likely close your account and take your deposit.

It is the best kind of secured credit - it is fully covered by your deposit. It would be a rare case indeed that a secured credit card "forgot" to cover themselves for a possible BK. Lrprn is right - your agreement probably gives them the right to take your deposit, your card, and maybe your first born child.

Well, maybe they will let you keep the kid.

[bcvw]

I have a card secured by a CD and maxed it out ($5000) months before filing. Because the CD was held as collateral, we were able to exempt it and use the $100 monthly payment on the secured card to pass the means test.

After we are discharged, we will let the card company take the CD. The card is useless now as they closed the account upon notification of our filing.