Credit card in good standing not reported in BK...

[davedude]

Filing Ch 7 ...

So, I work retail and I have a credit card through my employer (think macy's).

They have it in our contract that if you bounce a check or do not pay on the store card you are terminated.

It only has $400 on it and I was thinking of NOT listing it in my schedules. I've been making on time payments ($20/mo) for the past 2 years and I am never late.

Is this going to be a problem? I figured if I pay it off / close it and then it would be looked at as a preferential payment.

Thoughts / ideas?

Thanks,

[BobMango]

First off, you have to report it. You do have a few other options, though. $400 is going to be under the limit for preferential payments so if you have the cash you can go ahead and pay it off before filing. If you can't do that you can talk to your employer about reaffirming the debt so that you don't default. They will know you filed at some point since most credit companies regularly pull your file to check your financial condition.

[davedude]

Thanks Bob!

So quick question - at what point in the paperwork do I reaffirm it? I guess I haven't read much into that since I didn't think any of it applied to me.

[davedude]

Another quickie... isn't it illegal for your employer to fire you if you file bankruptcy? I know that is a federal law...but does that trump a company policy?

Thanks

[frogger]

Another quickie... isn't it illegal for your employer to fire you if you file bankruptcy? I know that is a federal law...but does that trump a company policy?

Thanks

The OP did not state that they would fire for bk, they would fire for bounced checks or not paying their card.

[AngelinaCat]

Frogger, davedude IS the OP.

DD, your question on what looks like a simple question, is full of land mines. $400.00 is not a lot of money, but when we were in bankruptcy, our attorney stressed to us that we dare not enter into any side agreements with any one creditor to pay their debt, or we ran the risk of having our entire case dismissed.

As far as being fired for filing bk, yes that is against the law; it is a form of discrimination. However labor laws are complex, and if your employer chooses to let you go, they will find a way to do it legally, and you will have very little ability to prove discrimination. You need to check your employee handbook very closely, AND you need to consult an attorney knowledgeable in your state's labor laws.

[nickofthedes]

friend worked for macy had credit card filed bk7 included account got discharge no problem at work...

[davedude]

Thank you all for your help... I believe I will file it in Ch 7 and just go about my work as normal... after talking to some colleagues it seems like it shouldn't be a problem. Fingers crossed!

[davedude]

I was reading up on preferential payments and I couldn't really find anything where it referenced an amount... what I did find was where it stated something like: no payments made to a creditor within 90 days.

So seeing as if I pay off my card and close it and then file the next week ... that still won't be fishy?

Thanks

[AngelinaCat]

The amount is $600.00 within the period of a year.

We had a poster who paid $500.00 to her mother to help her mother with a medical situation, and several months later pay another $500.00 to her mother to help with more medical expenses. Those two payments turned our poster's case into an Asset case, and she ended up having to pay the trustee $1000.00, or he would have gone after the mother.

If you wish to repay the $400.00, do so. But I would pay only $100.00 per month for four months, then wait at least 90 days before filing.

Good luck.

[tobee43]

Filing Ch 7 ...

So, I work retail and I have a credit card through my employer (think macy's).

They have it in our contract that if you bounce a check or do not pay on the store card you are terminated.

It only has $400 on it and I was thinking of NOT listing it in my schedules. I've been making on time payments ($20/mo) for the past 2 years and I am never late.

Is this going to be a problem? I figured if I pay it off / close it and then it would be looked at as a preferential payment.

Thoughts / ideas?

Thanks,

if the account is paid in full at your time of filing you do NOT have to list it...but IF there is a balance you MUST.

we left off approx. 6 cards with zero balances...our atty wanted to list them...i made the firm take them off the petition....it really didn't matter, since even tho they had zero balances and never a late payment they all closed the cards regardless due to the bk.

the ONLY reason we did that at the time of filing was i was foolish enough, since i heard on this forum a "few" cards with zero balances made it through, i thought i could maybe help us rebuild our credit...that plan sure didn't work!

[BKParalegal]

The amount is $600.00 within the period of a year.

We had a poster who paid $500.00 to her mother to help her mother with a medical situation, and several months later pay another $500.00 to her mother to help with more medical expenses. Those two payments turned our poster's case into an Asset case, and she ended up having to pay the trustee $1000.00, or he would have gone after the mother.

If you wish to repay the $400.00, do so. But I would pay only $100.00 per month for four months, then wait at least 90 days before filing.

Good luck.

@angelina- in your answer you informed them correctly that if it is less than $600 than it is below the preference limit and then you go on to confuse them by telling them to pay $400 over 4 months and then wait three more months to file. So your advice is it to delay their BK for 7 months over a $400 dischargeable debt?

Do you read your advice before your post? I don't mean to be too critical but really you need to keep with the law and not hunches.

Good luck

[AngelinaCat]

Actually I do read my posts before clicking 'submit.' You will see that I have advised elsewhere in this thread that the card should be listed. And I advised that our attorney stressed to us the importance of not entering any kind of side agreement with any creditor outside the bk or we ran the risk of having our entire case dismissed. We were not given a dollar amount; we were told "just don't do it." But it seems the OP is determined to do what he wants to do about that card. I still think it ought to be included.

[BKParalegal]

Fine just don't tell him to wait 7 months to file. But he can pay the darn thing off in full now and not list the card. It will still get closed but he won't have discharged a debt with his employer.

Try to answer the question he asked

And negotiating a side deal is just wrong on so many levels, the main point is you have every right after your bankruptcy to go pay your creditors, all BK did was discharge your liability of the debt, but the creditor still has a unpaid debt that never goes away for them.

[tobee43]

Actually I do read my posts before clicking 'submit.' You will see that I have advised elsewhere in this thread that the card should be listed. And I advised that our attorney stressed to us the importance of not entering any kind of side agreement with any creditor outside the bk or we ran the risk of having our entire case dismissed. We were not given a dollar amount; we were told "just don't do it." But it seems the OP is determined to do what he wants to do about that card. I still think it ought to be included.

i agree here and i think your point frankly is very clear....the OP is determined to do what we wants...

and i know you have really been able to give some great direction via your personal experiences that are so very appreciated..as well as all your work on this site....thanks!!