Cap1 Secured through ch 7

[jla4545]

currently filing a chapter 7. i read online that a secured credit card was treated the same way as any other secured loan through chapter 7 and i get to reaffirm it. well my lawyer doesn't seem to know whether to put it down or not since i'm not behind but i do want to keep it so like is it possible? or do i have to close it down and reopen after the discharge?

[despritfreya]

". . . I read online that a secured credit card was treated the same way as any other secured loan through chapter 7 and I get to reaffirm it.”

Possibly. However, depending upon the amount owed, the balance sitting in the bank account that secures the obligation, and the terms of the “loan”, a judge may determine that reaffirming is not in your best interest. You have not given sufficient information here. How much is the debt? How much $$ is sitting in the bank account? What is the interest rate being charged?

". . . My lawyer doesn't seem to know whether to put it down or not since I’m not behind. . ."

What? How is it possible that the bankruptcy lawyer does not know how to list this debt in a bankruptcy case? A secured credit card is no different than any other secured debt. The bank account is listed on Schedule A/B. There is a lien attached to the bank account. The creditor is listed on Schedule D. (No different than how a car debt is listed - Car on schedule A/B, lender on Schedule D.)

Des.

[jla4545]

It's a thousand dollar line of credit with only five bucks that I managed to charge before the account got frozen. 

also my attorney is now advising me to not list it at all "if I want to keep it" so this is gonna be a fun "someone on the internet said this" convo 

[jla4545]

Now the question is how do I tell my attorney he's doing my petition wrong given that I'm not the one with the legal degree 

[despritfreya]

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@jla4545 wrote:

Now the question is how do I tell my attorney he's doing my petition wrong given that I'm not the one with the legal degree 

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You don't need a legal degree to read the Bankruptcy Code.  Google 11 USC 521 (debtor's duties) and 11 USC 541 (what is property of the estate). 

1.  Unless there is $0 owed, the creditor gets listed. 

2.  The bank account, even if frozen but still open, is an asset that needs to be disclosed as it is still open and in your name. 

If the account is closed, the Statement of Financial Affairs, question 20 must be answered if closed within the past 1 year: 

"Within 1 year before you filed for bankruptcy, were any financial accounts or instruments held in your name, or for your benefit, closed, sold, moved, or transferred?"

If the creditor exercised its right to "set off " within the past 90 days, such is disclosed on the Statement of Financial Affairs (question 11):

"Within 90 days before you filed for bankruptcy, did any creditor, including a bank or financial institution, set off any amounts from your accounts. . ."

This is not rocket science.

Des.

[Shooting-For-800]

Seems like an asset to me if it is secured with a deposit.