Credit Card Center Advertiser Disclosure

Established Contributor
Posts: 1,156
Registered: ‎02-07-2017
0 Kudos

Re: Claiming Bankruptcy - keeping some credit cards

Here's an example (my own) of when bankruptcy really is an advisable solution. In the summer of 2014, I was facing huge (5 figures) repair bills for severe water and mold damage to my condo caused by a broken and leaking hot water heater that insurance wouldn't cover because the damage had been ongoing for so long, hadn't worked reliably full-time in nearly four years (from 2010) because the contract I was working most regularly on had ended (not to mention that I was about to become effectively unemployed due both to the contract I was still getting some work on ending and that my employer was getting into severe trouble with the Federal Government which resulted in its going bankrupt by the end of the year - Google "USIS" for the full story; hint - Edward Snowden), I'd been subsisting on SSDI since the beginning of 2012, not to mention that I had made some very bad financial decisions over the years (lack of education on credit leading me to bad credit-card practices, an ill-advised mortgage refinance in 2005 that didn't include a tax escrow account which led directly to a really bad mistake when I took out a personal loan in 2008, was talked several months later into doubling that debt by taking out another personal loan, and then - guess what - my employer ran out of work for me to do and I was furloughed for over three months which ate up all my cash reserves). In short, by July 2014 chapter 7 bankruptcy was the best way out for me going forward.


If you're not in a mess nearly as bad as I was in, think and then think again about whether you really need to file BK or whether there's a less drastic alternative.

Rebuilding credit since 12/14 Ch7 BK discharge. FICO 10/16/17:TU 659/EX 694/EQ 688 FICO 8 or 680 FICO 9 (Penfed), VS 3.0 10/16/17: TU 704/EX 691/EQ 697. $800 Amazon Prime Store Card, $951 Cap One secured Platinum MC, $1200 Walmart Store Card, $2000 Apple FCU Platinum Visa, $3000 Penfed Power Cash Rewards Visa, $3500 Cap One Quicksilver MC, $3600 Discover It, $4300 Overstock Store Card, $10k PenFed used car loan, $5k Navient student loan. In the garden as of 7/2/17 AND THIS TIME I REALLY MEAN IT!!! (unless I get a preapproval I can't refuse...)
Frequent Contributor
Posts: 265
Registered: ‎11-04-2016
0 Kudos

Re: Claiming Bankruptcy - keeping some credit cards

When you file bankruptcy, you can't pick which accounts to include.  You report all accounts and they almost always close them.  That's what they do for Chapter 7.  Are you looking at 7 or 13?  You will proably be able to keep paying your vehicle.  I dont know about a second vehicle since I only had one.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.