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Contributor
DVH1980
Posts: 246
Registered: ‎08-24-2011
0

Secured card BEFORE filing Chapter 7?

Ive did somne searching but havent found a specific answer.

 

Long story short, Im about to lose a Civil suit and be forced to file Chapter 7 after. Im current on 2 car loans(which I hope to reaffirm) and am in the process of paying off all my unsecured CC's so I can close them before filing and not have to inlcude them in the BK as Id like to get these cards back some day(USAA, AMex, Discover).

 

My question: I still have a Secured card opened with USAA from when I started my credit rebuild 3 years ago, will this get closed by USAA after my bankruptcy goes through? I dont plan on closing this one before I file as Id like to have an active line reporting besides my car loans. I was also considering getting a couple more secured cards before I file(about 120 days from now) so I can come out of the BK with some positve trade lines reporting.  Does anyone have any experience with keep Secured cards open during/post BK?  Im not sure if bank close Secured lines like they do unsecured lines after BK, even if they werent included in the BK?

My wallet:
***Amex BCE 3k***USAA Platinum Visa 12k***Barclays Apple 7500k***Veridian CU 10k***Discover It 10k***Bank of America 8k***Amex Zync***USAA Patinum MC 12k***Navy Federal 20k
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Senior Contributor
StartingOver10
Posts: 3,981
Registered: ‎03-06-2010
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Re: Secured card BEFORE filing Chapter 7?

No, do NOT leave your secured card open prior to filing. Do not get additional secured credit cards before filing BK. You will lose the deposits in your filing AND lose the tradeline.

 

Once you file, all the creditors - including those that are zero balance and secured will receive the notice of bankruptcy and close your accounts. You will have to disclose which cards are secured cards and declare the amount of the security in your bankruptcy petition. Then the deposits become an asset in your BK that goes to the creditors.

 

In short, close the zero balance and secured accounts prior to filing. You might then have a better shot of reopening them upon discharge.

Contributor
DVH1980
Posts: 246
Registered: ‎08-24-2011
0

Re: Secured card BEFORE filing Chapter 7?

Thanks for the reply. Would I still have disclose it as in asset if the deposit amount is only 500.00? Technically the 500.00 has been put into a 2 year CD.   More than likely that will be the only funds attached to any of my financial institutions as Ive already started clearing my  checking/savings accounts and only keep minimal blances for paying bills. 

My wallet:
***Amex BCE 3k***USAA Platinum Visa 12k***Barclays Apple 7500k***Veridian CU 10k***Discover It 10k***Bank of America 8k***Amex Zync***USAA Patinum MC 12k***Navy Federal 20k
Community Leader
Senior Contributor
StartingOver10
Posts: 3,981
Registered: ‎03-06-2010
0

Re: Secured card BEFORE filing Chapter 7?

Yes, you have to disclose every penney and its location (bank account/CD whatever -even cash on hand) on your petition.

 

If you don't, its BK fraud and big trouble.

Regular Contributor
ChistineNJ
Posts: 157
Registered: ‎04-04-2013
0

Re: Secured card BEFORE filing Chapter 7?

Dont do it, i opened a wells fargo secured before i fiiled BK, at the time i opened it i was not considering BK...fast foward i filed never used the card and did not include it in my schedule F, at some point they find out and close it down i have yet to get my deposit back...thats a different story for a different day. Long story short i called them and they explain to me that after im D/C id get it back just been dc on 6/21 but i havent called back yet. Ironically they send me pre-approvals fo their secured card and i receive emails saying to activate my card however i have not received anthir card from them. I know im rambling but your better off just waiting...or just dont do it with WF
 Cap1 1500.00, CU card 800.00, express 250, nrewards 2500.00, VS 500.00, quicksilver 1500.00, BML 500.00, CB Loan 1000.00

Starting Score: 553
Current Score: 630
Goal Score: 650


Take the myFICO Fitness Challenge

 Pre BK score: 565 (Credit-Infonet)
Filed Bk : 3/26/13
Scores: TU 591, EQU 579 EXP 516
BK D/C: 6/21/2013
Post Clean up Scores: TU 569, EQU 553 EXP 587
New Accounts
6/28 Capital One $300.00
7/ Fp $700.00
9/11 Express Retail Charge $250.00
10/28/13- nfcu nrewards $500.00

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