BK Question

[Anonymous]

Will be filing very soon - Could I get some advice as to which cards I should not include?  I seem to have one of everything ( my problem! )

I have read on the board that HSBC is a good card to rebuild with - I have one of those already!  Any help would be appreciated.

Thanks

[homewardbound]

I recently filed CH 7 and my laywer indicated that even if you retain a cc account prior to filing, the creditor will more than likely close the account anyway.  I'm not saying you shouldn't try to keep a few cards at - in fact if the balances are low and you think you're in a financial position to pay them down, it would be better for you to do so since you will have less negative (included in BK) accounts on your credit report.

[Anonymous]

tuxedo wrote:

Will be filing very soon - Could I get some advice as to which cards I should not include?  I

---

Okay when I filed BK in 1999, I included all accts that had a bad credit history with. My lawyer tried to make me include them all for the sake of haveing them all paid in full to get a good fresh start financially. However I would suggest keeping 1 out that you have a good credit history with, but them this depends on what your balances are. Can you tell us what cards you have, approx balances and what the payment history is to give more detailed advice.

[Anonymous]

Thank you for the reply -

Here is my situation -

Sadly, my score is 693 - with all accounts up to date - I have just too many credit cards with balances and I am unable to keep paying the minimum - It is a catch22.

Because I have been keeping up with the minimums, I have no cash to live on, so I have to use the cards to live... I have fallen into the balance transfer situation where I got nowhere, I can't get a personal loan - too much debt..- I feel I have no other option.

[Anonymous]

I really hate that. Especially if you have a good credit history. Well I would choose 1 card. Choose the card that you have the longest history with.

[Anonymous]

yeh, me too - I worked so hard to keep my score and credit good, but I can't do it anymore - I feel very defeated.

[CreditBob]

I just came out of my bankruptcy a few motnhs ago. During my chapter 13 I had two credit card accounts. Make sure they are a visa or a mastercard. The older the account the better because it is 35% of your fico score. Just make sure that from the filing date of your bankruptcy on, do not be late on any account even by one time. So I went through everything that you are about to go through.

Bob

[Anonymous]

Tuxedo - Don't feel defeated.  Lots of people here have had the same problems.  Sounds like you don't have a credit problem, you have a cash flow problem.  I recommend the website http://savingadvice.com -- it's a nice community of people who find ways to squeeze more out of every dollar.  I thought I was frugal, but some of them make me look like a total spendthrift!!

Good luck and don't despair.  When you get your cash under control you'll get that great score back.

[Anonymous]

Again, thanks for the help - One more question - My older cards have horrible interest rates, my newer ones - have better rates - I would like to keep the card or 2 with the lower rate.  One is a commerce visa ( I do my banking with them! ) and my American Express - ( I use for it's "protection ability" )

[Anonymous]

I wish you luck. I would seriously consider whether or not BK is the solution if I were you. A 693 is not a bad credit score. And if you are managing to make the minimum payments now, look long and hard at your situation for any possible alternative solution before you throw a stick on dynamite into your credit. If you were 3 months behind on all of those cards, that would be different, but it sounds like you've held it together. It's great that you've kept everything current. Can you transfer balances at all? Do you have a pretty good job? With a 693 you can easily qualify for a personal loan to consolidate your debt into a single payment. Try American General. High interest but fairly lenient to qualify. Anything you can do, avoid the BK. You're not as bad off as a lot of folks here. Plus, BK is a tougher gig now. The referee may force you into a 13 since you're current on everything. If that's the case you may as well try to consolidate yourself. I filed a 7 about 5 years ago then decided to handle it after the court ripped me a new one and wanted to convert me to a 13. I asked instead to have it dismissed and I fought through it. It's definitely not easy, but it's worth it if you can salvage your situation.

Message Edited by devhip on 05-14-2007 08:46 AM