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How are AU accounts handled in a BK7??

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panthersguy
New Contributor

How are AU accounts handled in a BK7??

Hey Guys,

 I don't post a lot on here but I sure do a LOT of reading.  My wife has been out of work for almost 2 months now and looks like we are gonna be filing a BK7.  We were paycheck to paycheck anyway d/t mainly cc debt.  Although she is getting paid from WC, 60% of her income is not gonna help.  My question is this, most of the credit cards we have, she is AU on and not joint or Primary.  What happens once we BOTH file together??  Would it be better to delete her now BEFORE we file or does it matter??

 

 

TIA

 

Smiley Very Happy

 

 

 

 

Message 1 of 4
3 REPLIES 3
StartingOver10
Moderator Emerita

Re: How are AU accounts handled in a BK7??

Yes, get her off the accounts. Make the filing as clean as possible even though you are filing together. The Bk petition really is a permanent record of the account status at the time of filing so separate her actual debt from your debt where possible IMO.

Message 2 of 4
panthersguy
New Contributor

Re: How are AU accounts handled in a BK7??

Thanks for the reply.  That's kind of what I was thinking too.  I figured if she's not an AU on a card that's IIB that we may have a better shot at getting back in with one of the companies (i.e Barclays or even AMEX and BoA).  We have 2 or 3 Cap1 cards now that we never use and have been at $0 balances forever. Should we close them in advance of the BK so it will show that WE closed them instead of the "grantor" on our reports or does it matter??

 

 

Any thoughts and suggestions are appreciated.

 

Jeff

Message 3 of 4
gdale6
Moderator Emeritus

Re: How are AU accounts handled in a BK7??


@panthersguy wrote:

Thanks for the reply.  That's kind of what I was thinking too.  I figured if she's not an AU on a card that's IIB that we may have a better shot at getting back in with one of the companies (i.e Barclays or even AMEX and BoA).  We have 2 or 3 Cap1 cards now that we never use and have been at $0 balances forever. Should we close them in advance of the BK so it will show that WE closed them instead of the "grantor" on our reports or does it matter??

 

 

Any thoughts and suggestions are appreciated.

 

Jeff


Yes closing them prior to BK preserves them as good accounts going forward that will remain on file for up to 10 years post close. Close them and make sure they updated as closed by consumer prior to filing the BK.

Message 4 of 4
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