can you keep a CC out of your BK?

[bk4sky]

im getting nervous about the thought of not having even an emergency CC, for things such as car repair. my car is 6 years old and already starting to nickel and dime me. its very hard to keep up. would it be a bad idea to keep a card out just for emergencies....and is it even legal to keep one out?

[southernbelle]

No you can't. Trust me I had platinum and gold cc's and wanted to keep at least one on reserve, but you can't pick and choose what debts to include. If the Trustee finds out, your case could get dismissed. Your atty. will tell you the same thing. Good luck.

[bk4sky]

wow...thanks for the quick response!!

[BK2008]

You can't keep them out, but then again, some creditors may *NOT* close you out.

I've had a few survive, and one of them isn't exactly a small line of credit, knock wood.

[treehugger1]

If you are using credit cards to fund auto repairs, then you will need to move beyond this. Remember that credit is what got you to this point. While it might seem "nice" to have a CC for emergencies, you will be better off planning for emergencies in your future budgeting.

As far as I know, if a CC has a zero balance when you file, then this is not a "debt." Hence, you probably do not need to list the CC as a creditor. I'm not sure. If so, then there is a possibility that the CC will survive BK. Then again, why bother to test the waters? Credit is what got you into this mess in the first place; be it medical, unsecured debt, gambling, etc. Credit is credit and you can learn to live without it.

Best to you, TH

[Flamingo]

If you are getting nervous about not having credit, the issue goes more beyond if you are considering filing BK. When you file, all debt is listed. If there is a credit card with a zero balance, your attorney will advise you as to that card. Usually they are not listed but we had to list every card we had, whether or not it had a debt attached to it. We had two cards survive our BK; one clothing retail store and one car parts retail store. Visas and MCs almost always do not as soon as the holding creditor gets wind of your filing BK. If may benefit you greatly if you are concerning about being without credit to find a Debtor's Anonymous or similar support group in your area while you are getting yourself out of debt and already worrying about credit afterwards. You will eventually repair your credit reports and rating but it takes sseveral years after BK. You will need to learn to live on a cash basis only for quite a while.

[bk4sky]

well its just that im in the process of filing now. ive just retained my lawyer and started making the payments to him. i just missed my 1st month on my cc's. they havent even started calling me yet. so on top of paying the lawyer each month it doesnt leave much left over and i just found out i need struts and very soon a catalitic converter. so i dont know what to do. maybe i can ask the lawyer if he will accept a lower payment if i fall short, but i dont even know if they go for that. and yes i do know i had a big problem with cc's. it wasnt always like that...but once i lost my good job, i didnt want to admit how bad things were, so along with having to charge to keep my head above water, i also charged to keep up with my lifestyle. if i had not done that then maybe i wouldnt be so bad in this situation. so i know i only have myself to blame.

[holding on]

If your debt to the cc you want to keep is 0 at time of filing, you may be able to leave it off. I had a card that had no debt on it and my lawyer said I did not have to list it. Your area/trustee maybe different. But once the cc does its usual health check and see's my bk filing, I don't think it will survive long.

you are not alone. many of us had acquired horrible credit habits during a time, that's why we're here.

[Flamingo]

well its just that im in the process of filing now. ive just retained my lawyer and started making the payments to him. i just missed my 1st month on my cc's. they havent even started calling me yet. so on top of paying the lawyer each month it doesnt leave much left over and i just found out i need struts and very soon a catalitic converter. so i dont know what to do. maybe i can ask the lawyer if he will accept a lower payment if i fall short, but i dont even know if they go for that. and yes i do know i had a big problem with cc's. it wasnt always like that...but once i lost my good job, i didnt want to admit how bad things were, so along with having to charge to keep my head above water, i also charged to keep up with my lifestyle. if i had not done that then maybe i wouldnt be so bad in this situation. so i know i only have myself to blame.

May I recommend to you that after your filing is complete that you look into taking a finance course at a local community college as to how to keep a budget. Believe me, it is the best time you will ever spend. It will help you learn how to deal with the credit trap and learn how to handle your money. You will also learn, as you have stated, that you will need to do a major lifestyle change so you don't fall back into bad habits. Remember filing BK wrecks your credit for 7 to 10 years so it is something you do not want to continually have to face again if you run up the bills and cannot pay them. You cannot file another Chapter 7 until 8 years after this one, if that is the Chapter you plan to file.

Best of luck to you...

[HHM]

The question, can you keep a credit card after BK, the answer is; doing so is not up to you. As others have pointed out, the lender will ultimately decide whether to keep the card open.

What the creditor looks at after BK is: whether, even with the BK, you still meet the criteria for the card in question. Most of the time, the answer is no, but some cards do remain open after BK. It really depends on how your credit looks after the BK is discharged.

[liz417]

BK4Sky,

I know how you feel, I was really worried too when I had to give up my credit cards. You just have to learn how to prepare for emergencies. We will be in a ch 13 repayment plan, so when we stopped paying the credit cards in mid May, that money goes straight to the attorney fees. Your money will be freed up once you stop paying the cc's.

Good Luck

[Lajazz947]

I must admit that I have always felt that having a CC for emergencies is a great idea.

My wife, who is infinitely more rational than I says just save the credit limit and keep it in cash, on hand.

I know its tough for most of us to save money but for those that can i know she is right.

As I posted earlier, save for those who have had catastrophic illness, job loss etc, if we lived as if we were under a 13 plan we would not be on this forum.

I am ALL cash now. What I can't pay for in cash I do not buy.