Kay/Jared during Bankruptcy

[MB2714]

If they both have a $0 balance. If you keep them but file a Chapter 7 will Kay/Jared close account if their not included in a bankruptcy? Does anyone know how often they do credit pull reviews? Or do you have to ask for a review? I'm filing Chapter 7 and they were paid off a couple months ago. That's why I'm asking to keep them and my car as a positive. During 7 process. 

[0REDSOX7]

If your car has an auto loan balance - and you are not re-affirming - it will not keep reporing - and will update to a zero balance and that it was IIB.  You do not want to re-affirm the balance ony our loan. 

For the other two - all cards that I had that had a zero balance (most were with GECRB - now Synchrony Bank) were cancelled once they got wind of it. 

They don't have to do manual reviews to get notice of your filing - they may get it from public records separately.  I would say, don't count on it surviving - but if it does, then rejoice!

[StartingOver10]

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@Kalamazoo2714 wrote:

If they both have a $0 balance. If you keep them but file a Chapter 7 will Kay/Jared close account if their not included in a bankruptcy? Does anyone know how often they do credit pull reviews? Or do you have to ask for a review? I'm filing Chapter 7 and they were paid off a couple months ago. That's why I'm asking to keep them and my car as a positive. During 7 process. 

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It is far better for you to go ahead and close the Kay/Jared accounts if you have a zero balance before you file BK.  That way the account remains on your CR as a positive account. If you file BK even with a zero balance the account will be closed IIB (included in bankrupty) and reflect a negative account on your CR. You can not exclude accounts out of your BK filing.

If you close it prior to filing not only will the account remain a positive closed tradeline - when you go to open the accounts back up again after your discharge it will be easy peasy.

It is no issue at all with the bk courts to close zero balance accounts prior to filing. The issue comes up if you pay off accounts within 90 days of filing (preferential payments). How the creditors find out about your filing is they subscribe to a bk filing list - when a SS # matches one of their accounts from the list - bam, the account is closed IIB.  You don't want to turn a postive tradeline into a negative account by having it listed IIB.

[Anonymous]

My account with Kay's was open with a $0 balance when I filed for BK in 2012. 6 months after discharge it still showed open with $0 credit limit. I called them and and they had to do a "credit review" which was NOT a new application. My $5500 CL was decreased to $1000. Although the CL was decreased it still shows as a positive account on my CR.

[ezdriver]

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@Anonymous wrote:

My account with Kay's was open with a $0 balance when I filed for BK in 2012. 6 months after discharge it still showed open with $0 credit limit. I called them and and they had to do a "credit review" which was NOT a new application. My $5500 CL was decreased to $1000. Although the CL was decreased it still shows as a positive account on my CR.

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This shows that each creditor will respond in different ways. Open with a $0 credit limit? Is that like being "somewhat pregnant"?

That was a good outcome for you and a smart business decision by Kay.