Keeping a tradeline alive???

[Nowwhatohio]

I have two old CC accounts with high credit limits and zero balances - I'm about to do a Ch. 7 - I need some advice.

Should I close the accounts before I file thus preserving the good payment history for a possible boost in my FICO after bankruptcy

-or-

Not list them in my petition because the balance is zero and hope they keep the accounts open

Thanks in advance

[HHM]

Closing those accounts is the worst thing you can do for your FICO...so DO NOT close them.

Nor do you need to list them on your Petition, reason being, you do not owe them any money, thus, there is no debt to list.

However, the bad news is, the creditors may decide to close the accounts on their own when you file BK 7. Whether they do so or not will depend on if/when they audit your credit report and discover you filed BK. Generally speaking, most creditors do not close accounts because of BK if you had a zero balance with them.

[CindyLou]

But they will sometimes close the account for non usage. i would call and ask both question: 1. will they close your account if they find out about BK and 2. will they close your account for non usage. Don't tell them who you are just ask the questions in general. If you tell us which cards you can probably get some experiences from us. I have a CBandT card that I've had for years. Paid off prior to BK after finding out from them they would not close and I am still actively using that card now almost 2 years later. On the other hand, AMex cancelled within a month of my filing chpt. 7. I hadn't planned on including them and had JUST purchased $3000 of new furniture right before I filed. My plan was to pay on it over 3 years. But when they closed the account on me, I said the heck with it and included them. Never heard a peep. I had full intentions of paying back but was not prepared for them to have close my entire high limit card!! Oh well, live and learn.

[Nowwhatohio]

I have a citibank that I just paid to zero (it had $12,000 on it) and an Amex I paid to zero (it had $5000 on it) a new household bank cc with an annual fee and a limit of only $300 (I got it in anticipation of bankruptcy but don't plan to use it and just hope it survives so I can start building credit right away).

It seems that you would be required to include AMEX in your petition anyway so maybe that's why they closed the account because you had a balance and were required to list them and they'd rather get rid of the account than deal with the hassle of an adversary proceeding to get you to reaffirm.