A few questions from those who have filed bk

[Anonymous]

Hello - my sister is thinking about filing bk & I was helping her go over her finances, hoping maybe she didn't need to.  For those of you who have filed ch 7 or 13, what exactly happens to your credit report when you file.  For example you have a 10 year old acct in good standing and are including it in your bk, does it completely wipe out all the years of good payment history then? 

An American Express with no balance and in good standing, not included in bankruptcy...does AMEX eventually find out that you filed and cancel your card anyways?  Is it maybe better to cancel the card prior to filing and thene in a few years reapply with them?

I have read that a lot of times the store credit cards will not cancel you if at a zero bal and not reported during bankruptcy filing.  Is this true?  I would think it would help you get your credit score back up after filing?

Private/alternative student loans - are the payments included in your ch 13 repayment plan?  Has anyone had any luck what so ever getting private career loans discharged?  I know there is some legislation out there that may change this, but just wondering if anyone has had any luck at all getting them discharged or even getting them decreased.  How exactly are student loans handled in bk...are they included in your total debt, maybe helping you qualify for ch 7 (but of course without not being discharged) or are they just not included at all in your debt situation and you always have to pay them outside the bankruptcy?  What are your experiences with this? 

Thanks!

[Anonymous]

Accounts with balance included in BK will say included in BK $0 balance on your credit report for 7 years. The BK on your credit public record for 10 years.

AMEX will cancel card when they find out about BK even if you have zero balance read card agreement says it there. Oh' and AMEX is hard to get again once you have a BK on your record... at least that's what I have heard they are very unforgiving.

As for your student loans those cannot be included in BK and you will need to make 100% repayment to those.

Hope this helps you out a little, know from my own experince very similar to yours ... good luck

[Anonymous]

According to my attny who is very good - has been doing mostly BK cases representing debtors for many years - whatever accounts you have when you file that are paid in full can be kept, everything else goes into the BK.  Fortunately for my wife her Neimans account was 0 balance, so it's still there and we can use it as long as we're current. 

[Anonymous]

According to me, a very good bankruptcy attorney who doesn't represent TexasBoy, it isn't a creditor unless you owe them money.  If it isn't a creditor,it doesn't get listed in a bankruptcy.  If it isn't listed in a bankrutpcy, it doesn't get official notice of the bankruptcy.   If it doesn't regularly check your credit report, it doesn't know you filed bankruptcy.  

The next time it does check your credit report, it will learn you filed bankruptcy and will likely close the account.   It does this because it knows you had the account open before the file date, and it doesn't know if it accidentally misplaced the bankruptcy notice it might have received, and might have been attempting to collect a debt in violation of federal law.  Its attorneys have advised it this is the safest thing to do.  

So, when TexasBoy didn't list his Neimans card because he had a zero balance, Neimans didn't learn of the bankruptcy.  As far as they know, he's a great client.   One day, they decide to check his credit to see if they can raise his interest rate, or if he's too much of a credit risk to keep his current limit, or if he's such a minor credit risk that they can offer him a higher limit.   And, suddenly, there's a bankruptcy.   The computer instantly cancels the account and mails a letter out to TexasBoy notifiying him of the account change.  Meanwhile, Mrs. TexasBoy is over at the Galleria having all kinds of fun shopping with her friends, when she attempts to make a purchase with her Neiman's card.   The nice sales clerk politely lets her know that card is declined, does she have another card she can offer?   That's a humbling experience. 

Not all creditors work this way, but many do.  The moral of the story is...always have another way to pay besides that credit card you held onto through the bankruptcy.  Don't be caught in Neimans trying to buy something without an alternate form of payment, and don't be caught at a gas station in the middle of nowhere on a dark stormy night with no alternate form of payment besides your gas card.    Get a new account post-discharge, and use it. 

[tolkien]

It depends on the company...I included all accounts in my filing and only one with a zero balance canceled the account.  I currently use and have good credit with the other  five.  I have also heard of companies closing the account you had prior to BK but setting up a new account depending on your credit history with them.   Good luck.