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

[daniel]

When filing for bankruptcy, the rule is that you have to make a schedule. A schedule is a list of all assets and liabilities that you are required under the law to disclose before a bankruptcy case could commence.

If your credit card company gives you notice of cancellation of your credit card, don't give up yet. Many credit card companies allow their credit card holders who are filing for bankruptcy to keep their credit card on condition that they agree to reaffirm the balance on the card and enter into a new agreement.

Try to re-negotiate the terms with your credit card company and see if you can settle for a circumstance that is advantageous for both you and the company. While the decision is up to the creditors, keep in mind that what they want is to avoid the loss incurred when the debt is discharged and to have your future business.

Dan.

[Dan, I deleted your signature because the link in your signature isn't working - it causes a "Cannot find server" error message. -lrprn)

[Bandit]

When filing for bankruptcy, the rule is that you have to make a schedule. A schedule is a list of all assets and liabilities that you are required under the law to disclose before a bankruptcy case could commence.

If your credit card company gives you notice of cancellation of your credit card, don't give up yet. Many credit card companies allow their credit card holders who are filing for bankruptcy to keep their credit card on condition that they agree to reaffirm the balance on the card and enter into a new agreement.

Try to re-negotiate the terms with your credit card company and see if you can settle for a circumstance that is advantageous for both you and the company. While the decision is up to the creditors, keep in mind that what they want is to avoid the loss incurred when the debt is discharged and to have your future business.

Dan.

Thanks for the reply, Dan.
My only asset is a 95 truck worth 3 or 4 thousand dollars. I have no idea what my liabilities are going to be after this is all done. Woo Hoo, I just got another medical bill today for 3 grand. Not looking real good because I cannot make all these payments as they want the money immediately or it goes to collection.

I suppose what I am seeing here is, it will al depend upon the bank of each card that I hold in the end and what they decide. I doubt I will have much choice in the matter. I do understand what you are saying though because they may allow me credit in the future especially if I can pay back those particular debts.

I think I have that correct.

[Bandit]

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.

Wow. I wish I had credit with them. That sounds like a more reasonable bank to deal with.

[Bandit]

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

Agreed. I know this is going to keep going on most likely until the end of the year. After the jaw is settled then five broken teeth will need repaired. I am probably going to have to find new doctors & dentist if I have to file for BK. It makes me wonder now how they will view a patient not being able to pay. Probably a lot like the credit card banks and each doctor will view it differently.

Thank you for the kind words, Scott, and best wishes to you as well.

[Bandit]

If there are any others here with an experience to share about what happened with your CC and a zero balance or good standing history after a BK, I would appreciate the input.

[lrprn]

If your credit card company gives you notice of cancellation of your credit card, don't give up yet. Many credit card companies allow their credit card holders who are filing for bankruptcy to keep their credit card on condition that they agree to reaffirm the balance on the card and enter into a new agreement.

I think this is misleading advice.
Keeping one credit card open and repaying it will bring up several potential problem areas:

- If you are able to keep one card and charge on it, that's taking on new debt during an active Ch 13 case. This is frowned upon by the trustee because the new debt may impair your ability to make your Ch 13 payments.

- Being able to pay on new debt also shows that you still have available disposable income that could go to pay your existing creditors.

- Why should one unsecured card be reaffirmed for the total amount owed while others don't receive the same treatment? Could this be considered a preferential payment by the trustee or the other lenders?

- Even if the cc company allows you to keep their card, nothing stops the cc company from increasing the APR to 30% if they wish.

When the dust settles, it's still best to let all the credit cards go and learn to live within what you earn. If you can't, then the credit cards you keep could lead you down the same dark path that forced you to file bk in the first place.

[CindyLou]

I wouldn't even advise anyone to keep a balance and reafirm a balance on a card or even aquire new debt during a 13. Having a zero balance card survive a 7 or a 13 and usuing for emergencies or card rentals for example and then paying in full is not aquiring new debt. Plus many on here are trying to rebuild credit by getting orchard bank, et al. Keeping card is not any different than getting new cards....

[Bandit]

I wouldn't even advise anyone to keep a balance and reafirm a balance on a card or even aquire new debt during a 13. Having a zero balance card survive a 7 or a 13 and usuing for emergencies or card rentals for example and then paying in full is not aquiring new debt. Plus many on here are trying to rebuild credit by getting orchard bank, et al. Keeping card is not any different than getting new cards....

I don't know the rules but I think you could use your card if it survives 7 but not 13 because you will already be paying some lenders back & theymight not like you charging anything at all. (?)

What you have said though has been my concern, especially to rent a car if needed or get a plane ticket to go see my mother & to be at my fathers funeral when he passes on and things like this. Certain things you simply cannot buy or use with cash only. This is a concern for me. I know it is later down the road that I have to deal with it.

Orchard Bank is a good one to have or to get after it all to help you build credit again?

[Bandit]

When the dust settles, it's still best to let all the credit cards go and learn to live within what you earn. If you can't, then the credit cards you keep could lead you down the same dark path that forced you to file bk in the first place.

Absolutely agreed. If there is any balance on it, let it go. I never charged anything unless I knew I could pay it back in less than 2 years. There were some real good 0% or 1% deals with some of the banks that I could pay off before the loan was up, so I was able to make some decent purchases without getting into the slum of high interest loans on CC's.

One of my friends charges everything constantly without even thinking twice about what he owed & just kept paying the minimum. He ran into all kinds of problems- car repo, mortgage foreclosure...he eventually filed for a BK & is doing better now.

If you can live within what you make & have a little left over each month then get something you really need or want but not to be froogle with any cards is wise. I just wish the wisdom would have allowed me to afford medical & hospital insurance then I would not be looking at such a mess.