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07-06-2013 06:03 AM
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?
07-06-2013 11:50 AM
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.
07-06-2013 12:16 PM
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.
07-06-2013 12:20 PM
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.
07-06-2013 01:04 PM
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