Bankruptcy

[CreditBob]

As a reminder for those that forgot or are new members I wanted to pass something important on to you. If you are going to file for bankruptcy keep at least one major credit card and do not use it until the bankruptcy is finalized. By keeping one revolving account your score will not be as low as if you cancelled all of them. Make sure that the revolving account is not a dept. Store or gas station card. A major credit card will have more of a positive impact on the score. So by the time your bankruptcy falls off the credit report you can easily have a fico score in the area of 760 to the 800's. But if you start all over again then it will take that much longer. So please keep at least one card account open. On another note if you are going to file for bankruptcy do not use any credit cards within six months of filing.

[granny031350]

hopefully the unused card will survive the BK.  Some have had it happen in the past.  However many times, even if you have a zero balance on the card and it is not listed, the lender will shut it down automatically once that public record is recorded on your cra.  However, any loan, mortgage or car that survives and is reaffirmed and paid on time will also help your credit if you can get the lender to report your on time payments.

[beenthere]

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granny031350 wrote:

hopefully the unused card will survive the BK.  Some have had it happen in the past.  However many times, even if you have a zero balance on the card and it is not listed, the lender will shut it down automatically once that public record is recorded on your cra.  However, any loan, mortgage or car that survives and is reaffirmed and paid on time will also help your credit if you can get the lender to report your on time payments.

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I kept a (1) vehicle payment. House, cards and everything else went in a BK 5 years ago. I'm at 672 average FICO now and heading up.

[bamagirl1]

i wasnt able to keep in i wish i would have but such is life

[LTrain823]

I am getting close to file for BK and this was something i was planning on doing. I was planning on keeping my cap on card open. It's my smallest line ($500) so i figured it would be a good idea to keep it, use it, and pay it off every month if i could. Does anyone know if cap one is one of the creditors who will for sure cancel it once the BK reports? I also have a household card that has a $2000 credit line that i could keep open if it has a better chance of not getting canceled.

Also, if i have used my cards in the past 90 days what happens? I have read in numerous places that something bad happens if that were the case. I can afford to wait 90 days to file but just wanted to know what were the consequences?

[granny031350]

If the cards have a zero balance, then do do not have to be listed in your BK.  But that is no guarantee that they won't be closed by the credit lender.  It is a crap shoot what stays open and what doesn't

[LTrain823]

Does it look worse on your CR if it was closed by the creditor or closed due to BK?

[granny031350]

closed by credit grantor is not as great as closed by consumer but with a BK I don't think it will matter either way.

[dodgeman]

most creditors will close that acct for you.

[dodgeman]

thats almost the same thing