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Bankruptcy - Cards with no balance

Idaho79
New Visitor

Bankruptcy - Cards with no balance

Hello-

 

I am looking into filing CH7 to get out from previous debt of a car loan repo and several collections from past issues. My question is when I go to file for bankruptcy I currently have several cards in good standing. If at the time of filing some of those cards have a zero balance, do they still have to be included in the bankruptcy? Thank you for any insight you might provide going into this process.

4 REPLIES 4
CreditDenied
Valued Member

Re: Bankruptcy - Cards with no balance

They don’t have to be included but most ‘get wind’ of the bankruptcy and close you anyways... that’s what I got from the search anyways having had the same questions myself.

Message 2 of 5
Nova5041
Frequent Contributor

Re: Bankruptcy - Cards with no balance

Yes, most banks will find out that you filed bankruptcy and will close your account. Definitely close all your cards in good standings right away. It will benefit you in the long run.

BK 7 Discharged: 5/30/2018
Fico Scores after Discharge: Experian-552 TransUnion- 490 Equifax- 571
Message 3 of 5
FireMedic1
Super Contributor

Re: Bankruptcy - Cards with no balance


@Nova5041 wrote:
Yes, most banks will find out that you filed bankruptcy and will close your account. Definitely close all your cards in good standings right away. It will benefit you in the long run.

+1 Close them down. Then it will list as "Closed by Consumer" and not IIB. Better chance to get back in depending on the CCC.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 4 of 5
ohnikki39
New Contributor

Re: Bankruptcy - Cards with no balance

I have found from personal experience that it is important to close all your accounts in good standing if possible. For example I had a Discover card that was at a $0 balance when I filed, I was hoping it would survive the BK so I could use it to help rebuild. When my bankruptcy discharged it was updated as Closed and included in bankruptcy. After several attempts and escalations and reading these boards I realize this is how they handle accounts when they receive notification of a bankruptcy filing. Its been 2 years since discharge and I still cannot get approved for an unsecured line with Discover.

Current Scores
Experian Fico 702, Equifax 712 and Transunion 706
Message 5 of 5
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