Keep one credit card?

[hardtimespdx]

Hello everyone,
Just curious here. All my credit cards are maxed out, but I have one credit card..a target visa. I have not used it..and have had the card for over 1 year. My bed frame just cracked...and I wanted to buy a frame for about $350. If I charge this card, but make payments, can I try and keep the one card after ch 7 bk? The charge also may be within the 90 day rule...I might file in about 2 months. I've heard it's only a purchase over $500 that can cause a red flag...but I don't know. Like I said I would make the payments on this card if I charge on it. Thanks!

[jktrading]

Hello everyone,
Just curious here. All my credit cards are maxed out, but I have one credit card..a target visa. I have not used it..and have had the card for over 1 year. My bed frame just cracked...and I wanted to buy a frame for about $350. If I charge this card, but make payments, can I try and keep the one card after ch 7 bk? The charge also may be within the 90 day rule...I might file in about 2 months. I've heard it's only a purchase over $500 that can cause a red flag...but I don't know. Like I said I would make the payments on this card if I charge on it. Thanks!

I believe when any CC does a soft inquiry on your credit report checking on your current status, and sees a BK, they always close the account. Even if you don't include it in BK.

For the more experienced BK people, which may help the OP, and myself, Is it best to close the account yourself, then wait for the grantors to do so? Even a maxed card can be closed, correct? Of course, they will still expect payment, and that might expedite matters.

[FreshLikeADaisy]

Hardtimespdx, I don't know if you'd consider this, but a bed *frame* is not something I'd pay retail for because they are so available at garage sales and flea markets. Depends on your bed, but I wouldn't pay more than $50 unless it had to be a custom job. You may find it very worth your while to check craigslist or freecycle before you spend $$$ on that particular item. Replace the frame, keep the existing headboard/footboard. Good luck!

[magyar123]

Hello everyone,
Just curious here. All my credit cards are maxed out, but I have one credit card..a target visa. I have not used it..and have had the card for over 1 year. My bed frame just cracked...and I wanted to buy a frame for about $350. If I charge this card, but make payments, can I try and keep the one card after ch 7 bk? The charge also may be within the 90 day rule...I might file in about 2 months. I've heard it's only a purchase over $500 that can cause a red flag...but I don't know. Like I said I would make the payments on this card if I charge on it. Thanks!

On the date that you file you have to include ALL cards that reflect balances .You cannot pick and choose which cards you want to file on.

[monkatom]

what if you have 2 dept store cards with no balances that have not been used. could you exclude those in hopes that they stay open and you can use those to try and rebuild you're credit?

[Dirk Squarejaw]

You can't pick and choose, but you could reaffirm the debt if the frame is coming from an outlet that uses a "secured" card where they have the right to come get your $350 bed frame.

BTW, that must be one heck of a bed frame for $350. Titanium?

[AboutToBK13]

Typically, CC's are closed once the company finds out that you have filed BK, whether there is a balance on them or not.

In a very few instances, I have seen where people report that they "kept" a CC post BK. Most likely, they just fell through the cracks.

[jnjw]

My husband and I both had cards that had no balances on them. Mine was a Penney's card that I have had since before marriage, over 11 years. Had never paid a late payment and like I said, there was no balance. I really never used it a whole lot, just sometimes around the holidays or school clothes shopping, etc. I received a letter from them about a week or two after filing stating that due to my recently filing BK, they were closing my account. The next day, we received the same letter about husband's card (Chase) with NO balance, had had it for probably 2 years and only used it once and paid off whatever was charged like the following month. Obviously we didn't list either of these cards in our BK because they had no balance, and I had thought maybe by keeping them open, it would help later on to rebuild our credit. Guess not.

I talked to someone at another forum that said it looks better on your credit report if you close the account first before the credit card company does. I don't know how true that is. Of course, I didn't get the chance to do that!

[hardtimespdx]

Okay...Thanks for everyone's comments....I think the bed frame is not a purchase I should make right now...I'll look on craigslist. However...does anyone know if I can charge a living expense like my power bill on the credit card...or will that still fall into the 90 day, not supposed to make any charges rule?

[HHM]

Okay...Thanks for everyone's comments....I think the bed frame is not a purchase I should make right now...I'll look on craigslist. However...does anyone know if I can charge a living expense like my power bill on the credit card...or will that still fall into the 90 day, not supposed to make any charges rule?

You can charge normal living expenses (necessities) within 90 days of filing BK and now run-a-fowl of the 90 day rule.

[CindyLou]

As HHM says, you are only in a problem for luxury items. However, technically, once you have decided to file you should use the card. BUT a necessity is a necessity and if you have to pay an electric bill or buy food in order to get by then you should be fine.

I hardly think a bed frame is luxury item. But then again its not really a necessity. Be safe and use it only if required for necessities and your should be fine.

[Flamingo]

Hello everyone,
Just curious here. All my credit cards are maxed out, but I have one credit card..a target visa. I have not used it..and have had the card for over 1 year. My bed frame just cracked...and I wanted to buy a frame for about $350. If I charge this card, but make payments, can I try and keep the one card after ch 7 bk? The charge also may be within the 90 day rule...I might file in about 2 months. I've heard it's only a purchase over $500 that can cause a red flag...but I don't know. Like I said I would make the payments on this card if I charge on it. Thanks!

Retaining no balance CC cards at the time of filing seems to be different for everyone. We filed Old Law Chapter 13 in 2002 and and prior to filing had two no balance CC's, one a major clothing store chain and one car supply/service center store. We never had any late or nonpayments on any CC card prior to filing. Our attorney told us we could keep those cards if we wished but there is a chance the creditor would close out the card if they learn of our filing. Those cards were never closed. To keep them open, once or twice a year I would charge a low amount of, say, $25, and pay the bill immediately when it came in. To this day we have those cards, still with zero balance, but they have helped our credit scores now reach the high 790's just over one year after Chapter 13 discharge.

It is a catch as catch can thing as to whether the zero balance cards will be cancelled. If the creditor learns of the filing, they may cancel the card; they may not. Lay low and see what happens if you decide to keep it open. I must say the majority do get cancelled from what I have seen posted over the years on various forums regarding the same subject.