Can I keep and use some credit cards that I currently have after BR?

[Bandit]

Hello

I am new here. My problem and questions seem a little simple after reading some of the other situations here.

I own nothing except for a 95 truck. I gross less than 20,000 a year.

I just broke my jaw and five teeth and had to have surgery a month ago. The medical bills are going to approach about 30,000 to 40,000 when all is done. The total for all outstanding debt will be about 50,000 or less.

There is no way I can pay all that off even in the next ten years and I already know they are going to send this to collection.

I had to charge some of the down payments to the Doctors & Hospital with a debt of 7,000. My only other debts are 3,000 to a furniture store, and I am looking at about 2,000 in truck repairs which will go on a credit card as well.

I can see a downward spiral taking a trend in my life financially in the very near future.

My only real concern at the moment is, can you file for bankruptcy only on the medical bills and maybe just the truck repairs, or do you have to file on EVERYTHING that you owe?

and... if I file only on the bills that are very large can you still keep and use the other credit cards that are clear with no balance, or, do you end up having to give up ALL credit & credit cards that you have after the BR?

For example, I file bankrupt on the medical & hospital only, will I still be able to use my other credit cards that I have a good credit with?

Thank You in advance for your input, knowledge and experience with this.

[JollyGG]

You must list ALL debt when you declare bankruptcy. You cannot pick and choose.

Additionally be very careful about charging anything once you have made the decision to file. If you were to make a decision to file bankruptcy, then charge the truck repairs that is considered fraud.

[lrprn]

So sorry about your facial injury, bandit - hope you are doing ok.

You must list ALL debt when you declare bankruptcy. You cannot pick and choose.

JollyGG is right. If you deliberately leave off known debts when you file, that can get you into a whole heap of trouble.

One good thing comes from losing all your credit cards. This forces you to learn to live within what you make. All of us here have faced it, and most of us say it's the most important life lesson we've learned from bankruptcy.

However, if you wipe out all your medical and credit card debt by filing Ch 7 and you still can't live within your means, then filing bankruptcy isn't going to help you in the long run. You'll have to find a way to make more income or cut your living expenses even further. It's a tough, cold financial world out there. Luckily you can recover fairly quickly after Ch 7 - just have to sort out how to not end up in financial trouble again after because you can't file Ch 7 again for 8 long years.

Hang in there - keep asking questions - we'll help you as much as we can. We're good listeners for old-fashioned venting on the tough days too

[Bandit]

You must list ALL debt when you declare bankruptcy. You cannot pick and choose.

Additionally be very careful about charging anything once you have made the decision to file. If you were to make a decision to file bankruptcy, then charge the truck repairs that is considered fraud.

Well, I have not actually made a decision to do anything yet.


I understand listing all debt, but I am talking about something different. I am in reference to my credit cards that have 0.00 balance. I owe nothing on them. Will those cards be no good if/after I file?

There is no reason to list them if they are not a debt. See what I mean now? Can I still use them after

Those are the cards I want to keep i.e. for short term emergecies like death in the family, quick plane ticket to get there or truck repair. My truck will get the repairs it needs without fraud you speak of.

But, do you see what I am saying now?

[Bandit]

So sorry about your facial injury, bandit - hope you are doing ok.

JollyGG is right. If you deliberately leave off known debts when you file, that can get you into a whole heap of trouble.

One good thing comes from losing all your credit cards. This forces you to learn to live within what you make. All of us here have faced it, and most of us say it's the most important life lesson we've learned from bankruptcy.

However, if you wipe out all your medical and credit card debt by filing Ch 7 and you still can't live within your means, then filing bankruptcy isn't going to help you in the long run. You'll have to find a way to make more income or cut your living expenses even further. It's a tough, cold financial world out there. Luckily you can recover fairly quickly after Ch 7 - just have to sort out how to not end up in financial trouble again after because you can't file Ch 7 again for 8 long years.

Hang in there - keep asking questions - we'll help you as much as we can. We're good listeners for old-fashioned venting on the tough days too

My jaw is still wired shut so it is kind of difficult but I have started back to work. Thank you for the concern and your reply, lrprn.

I don't have a problem getting along on a small income. I have learned how to manage & shop wisely. Of course, never expecting huge medical bills along the way. I do not have huge debts like a lot of people do. I always use my cards for about 3K, then pay it off before making more debt. But now with this medical bill EVERYTHING is different. One, I had to use two cards for large downpayments to get the Dr. & Hospital to help me - so I will tail spin down, soon.

So, I am just trying to figure out a way to get rid of this medical bill but keep the clear credit cards that I have. Thanks for listening and we can vent together for awhile.

I hope I can figure out what to do through this forum. I have a lot of reading to do. Thanks again.

[lrprn]

I am in reference to my credit cards that have 0.00 balance. I owe nothing on them. Will those cards be no good if/after I file?

First the good news - no, you don't have to list zero balance credit cards as creditors when you file.

Now the bad news - the big cc companies have a shared database that they all pull information from. If you file bankruptcy, that information is going into that database. After that, almost every cc company is going to cancel your credit card with them, zero balance or not.

Very rarely a credit card squeaks through and doesn't get canceled (usually gas or small local merchant cards), but there's no way to predict if that's going to happen for you Sorry to be the bearer of bad news.

[Bandit]

First the good news - no, you don't have to list zero balance credit cards as creditors when you file.

Now the bad news - the big cc companies have a shared database that they all pull information from. If you file bankruptcy, that information is going into that database. After that, almost every cc company is going to cancel your credit card with them, zero balance or not.

Very rarely a credit card squeaks through and doesn't get canceled (usually gas or small local merchant cards), but there's no way to predict if that's going to happen for you Sorry to be the bearer of bad news.

Ok. So My credit cards would be useless even if I have 20 years of a good record with them. That really stinks!

well, if that is the case, then I guess I could go charge the medical bills & pay the hospital & Dr off to get them off my back, then I would still have no choice but to file on the cards. This is a catch 22.

Thanks for the bad news, that is what I was wondering about.

*scratches head*

[lrprn]

Ok. So My credit cards would be useless even if I have 20 years of a good record with them. That really stinks!

Yep. Same thing happened to both hubby and myself after we filed Ch 13. Cards we had for 30 years dropped us like a hot potato. Welcome to the generous and giving spirit of today's financial barons. When they can't make a profit off you, they aren't interested.

The worst....after you file these very same cc companies that cancelled your 20-year card with a zero balance will send you multiple cc card offers with a 29% APR plus a $150/year fee and make it sound like they are doing you a huge favor!

Between hubby and I we get 2-3 offers every week from these idiots while we're in an active Ch 13 bankruptcy and can't take on any new debt! We could stop the offers, but it's kind of fun to see what awful terms each of us are offered!

[Lindsay]

A friend of ours filed BK 7 right before the new law took effect. He had a zero balance on his Target and Macy's credit cards and one Visa. The Visa was cancelled after the BK was filed, but Target and Macys let him keep the cards and credit limits. Its been 2 years and he's got about six cards now and about to buy a house. I've been fighting bankruptcy for three or four years and paying unbelievable interest rates. I should have probably filed a few years ago and things would be better now. So even if you lose the 0 balance cards, you'll be able to get some emergency cards after you are discharged.

I'm sorry to hear about your broken jaw. That's really some bad luck. I hope that things get better for you soon.

[guzzie]

sorry about your injury....try and list any you can remember....can always
amend the schedules.....good luck and welcome...guzzie

[Bandit]

Yep. Same thing happened to both hubby and myself after we filed Ch 13. Cards we had for 30 years dropped us like a hot potato. Welcome to the generous and giving spirit of today's financial barons. When they can't make a profit off you, they aren't interested.

This is what I was wondering about. It makes no good sense to me but I had a feeling that is what would happen. Put me on the hot potato list because I sense the being tossed around coming soon.

The worst....after you file these very same cc companies that cancelled your 20-year card with a zero balance will send you multiple cc card offers with a 29% APR plus a $150/year fee and make it sound like they are doing you a huge favor!

Thanks for the information. I believe it. The same company that made fair money off of you for 30 years now thinks you will be so stupid to get sucked into that game. It's rude of them.

Between hubby and I we get 2-3 offers every week from these idiots while we're in an active Ch 13 bankruptcy and can't take on any new debt! We could stop the offers, but it's kind of fun to see what awful terms each of us are offered!

It is kind of funny that they do that to people. Like you are going to sign up to be the bulls eye. Sorry to hear about the 13 but at the same time I am seeing positive side to it (more pro than con). I do not know anything about this stuff so it is interesting to me now that it feels like I am being tossed into something I did not bargain for. I always wondered why it was so, that when I made a larger purchase on a cc, the very next week I would get 3 or 4offers from various cc.

Another thing I am finding interesting is how many people that I know (friends & family) have filed for a 7 or 13 that I was never aware of and in the long run they say they were way better off for filing.
Thanks again for the info, lrprn.

[Bandit]

A friend of ours filed BK 7 right before the new law took effect. He had a zero balance on his Target and Macy's credit cards and one Visa. The Visa was cancelled after the BK was filed, but Target and Macys let him keep the cards and credit limits. Its been 2 years and he's got about six cards now and about to buy a house. I've been fighting bankruptcy for three or four years and paying unbelievable interest rates. I should have probably filed a few years ago and things would be better now. So even if you lose the 0 balance cards, you'll be able to get some emergency cards after you are discharged.

I'm sorry to hear about your broken jaw. That's really some bad luck. I hope that things get better for you soon.

Is Macys & Target the same company? I do have one Target card with a zero balance. All of my visas are at zero balance except for one. That is awesome to hear that in two years things really turned around for the good for your friend. I did not think it would take seven years to start building some credit back up so someone could buy a house or even a used car before seven years. It is good to know that it would not take very long to be able to get an emergency card. That is what had been bothering me the most & I could not find any answers on this 0.00 balance CC anywhere.

I am also fighting the thought of Bankruptcy yet it seems it will be the best thing in the long haul. For now I am just going with the flow, make the payments as they come until I cannot juggle it any more. I am not ready just yet to jump into anything & hopefully I wont ever have to do it.

It is interesting as to why the big cc cancels everyone but the little ones like TARGET keeps them open.

I am half way through the broken jaw wiring & it feels like it is healing very fast. My jaw actualy broke in three places (both sides & in the middle and on one side broke almost a half an inch) that is why the large, surgery & hospital bill. It puts real perspective into your life and makes you appreciate, food, restraunts, eating and all the flavors and things we take advantage of every day. The shakes and soups are good but Blenderized pizza and tuna just does not work well through a straw. & it settles kind of funny in the belly.

Things are getting better & thanks for the information, Lindsay.

[Bandit]

sorry about your injury....try and list any you can remember....can always
amend the schedules.....good luck and welcome...guzzie

Hello guzzie. Thanks for the welcome with good health. I am going to need some good luck. I am not sure at the moment what I should list but I am doing my best not to fret things.
Good luck & lots of good health back at ya.

[CindyLou]

I had a Columbus Bank and Trust Credit Card that survived my BK with a zero balance and I still use it today without any problem. They said they don't close their accounts due to BK if in good standing.

[JRScott]

Sorry to hear about the injuries. I hope you recover well.

It might be best to hold off a decision on any filing until you are past this emergency just in case further medical expense is needed a month or two down the road.

Good Luck