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Include CC in Chap 7

Valued Member

Include CC in Chap 7

I have decided to file chap 7, but I have some cc that are current (cap1, orchard).  Do I have to include them in the chap 7?  If I have to include them, will I be able to reapply to these companies to rebuild my credit?

Message 1 of 6
5 REPLIES
Established Contributor

Re: Include CC in Chap 7

Talk to your attorney if you have one representing you, but pretty certain you can usually choose what to include and not include in bankrupcy, at least I did 8 years ago.

 

If you have low balance maybe you would not want to include them so you can still have a CC to use afterwards. Though you should be able to get credit afterwards. My BK was 8 years ago but I remember getting offers from Cap1 within months after. Cruise the forums here there seems to be alot of experience on board getting credit after BK

 

Message 2 of 6
Established Contributor

Re: Include CC in Chap 7

BK is all or nothing.  You must include all credit accounts which have a balance.  Some people think you can pay off a card immediatley before BK and exclude it, but that is bankruptcy fraud unless you paid it off 6+ months before you file and didn't use it at all after the payoff.

 

On the bright side, I included both C1 and Orchard (HSBC) in my BK7 and got both shortly thereafter.  See this thread:

 

http://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td-...

 

-SM

 

 

I am not an attorney and none of what I write should be construed as legal advice. For legal advice please consult an attorney.

Starting Score: ~470 preBK(8/2010)
Current Scores as of Late January 2016 All 700+. Last CR pull from a lender(housing) was mid-score 749.
Goal Score: 700+ - reached.
Message 3 of 6
Established Contributor

Re: Include CC in Chap 7


SoulMaster wrote:

BK is all or nothing.  



I wonder is this a recent change then? When I had my BK (8 years ago) I did not include my car loan. I also had a CC that I left on there that I shared with my mother at the time, maybe I was just an AU on it, II'm not certain but the lawyer told me I could exclude anything I didn't want to include on the BK.  

Message 4 of 6
Frequent Contributor

Re: Include CC in Chap 7

When u file for BK u MUST include every card with a balance.

Also don't try to pay your card off in the hopes of it staying open after your bk.

Most credit cards will get closed by your creditor once they find out about your bk

Message 5 of 6
Established Contributor

Re: Include CC in Chap 7


compassion101 wrote:

SoulMaster wrote:

BK is all or nothing.  



I wonder is this a recent change then? When I had my BK (8 years ago) I did not include my car loan. I also had a CC that I left on there that I shared with my mother at the time, maybe I was just an AU on it, II'm not certain but the lawyer told me I could exclude anything I didn't want to include on the BK.  


He might have told you you could "reaffirm" anything you wanted to.  If he did, he wasn't a very good lawyer... good lawyers won't let you reaffirm anything.  BK is for a fresh start, not to wipe out "some" of your debt.

 

I'm not sure what the full gamut of changes were when they rewrote the BK code in 2005, but that could be it.  I'm unfamiliar with any of the rules before the current ones, and I am positive that the current ones are all or nothing.

 

-SM

I am not an attorney and none of what I write should be construed as legal advice. For legal advice please consult an attorney.

Starting Score: ~470 preBK(8/2010)
Current Scores as of Late January 2016 All 700+. Last CR pull from a lender(housing) was mid-score 749.
Goal Score: 700+ - reached.
Message 6 of 6