Credit Card Advice Before Filing Chapter 7

[Anonymous]

I think I'm going to file chapter 7 in the next month and I've been on here reading everything I can. If possible, I would love to get some clarity on a few things ...

I will be burning pretty much every big creditor if I put every card in the filing. I have seen where some chose to keep perhaps their oldest card. My oldest happens to be a Cap 1 Secured card, but I would need to pay off the 850 balance, which I can do. I have 2 other capital 1 cards I cannot pay off so will they close my secured account anyway? Should I not bother trying to keep it? 

I'd like to have at least 1 card available to me post-bankruptcy to help rebuild my credit but I can only pay off 1 card. Any advice on which company won't close your account for filing?

Cap 1

Discover

Amex

Citi

Amazon Chase

20 million store cards

[Anonymous]

I think most banks will close your account after your filling hit the CRA. Just pay all minimum for all your accounts until your filling date so you wont hit late 30-60-90. Make sure ask your lawyer, when he/she will filled it. Dont worry, after discharge, you can apply for Capital One again. Some member approved 1 month after discharge, others need couple months, so depands on your profile. Merrick Bank and Credit One also will sending you mailer. After BK, just be more responsible with credit. There is a life after BK. There are million information in this forum that will help you through BK process and rebuilding your credit. Just read, read and read

[kilroy8]

I don't have any experience with bankruptcy, but I don' t think it works like that. You can exclude a mortgage, car loan and some personal items, but not any credit cards to my knowledge. Someone with experience will chime in, I'm sure.

[Anonymous]

Paying off any cards before filing is a no-no.

In some rare instances a $0 balance card will make it through a BK. It's nothing to plan on however.

Don't worry about who is going to lend you $ on the otherside. You'll cross that bridge when you get to it. 

[shadanat]

Save the $850 and apply for a secured card after your 341 meeting to start rebuilding. Navy Fed has a great secured card that does graduate or if you can't get in with them try State Department credit union. That card doesn't graduate but it helps you build credit. You can make a donation to a group (can't remember which one) to get in with them.

Like the other poster say paying off a balance prior to filing is a no no. 

[Anonymous]

Paying big amounts before filing is a big no-no.

You can't keep any of them because they will be closed anyway. (Your attorney likely will run you credit report and include every single account whether it has a balance or not). But either way when your cards do reviews of your credit report and they see it they will close the account. It is in the language of the terms and conditions that filing bankruptcy is automatic default of your account.

USAA and Discover both offered me secured cards BEFORE discharge. Which helps because i don't get my discharge until next month but at least i've started my rebuild.

[Dalmus]

You cannot suddenly pay one credit card down to $0 before filing BK7.  If you had paid it down to $0 6-12 months before filing, you can reasonably say you hadn't intended on filing BK back then.  The Trustee may let it slide.

That being said, the Bankruptcy law says all entitees to which you owe money must be notified of your filing.  If you do not owe them money (In other words, a $0 balance) you can instruct your lawyer to exclude them from the mailing matrix and there's nothing wrong with that.  BUT, if it looks like you intentionally favored one debt over the other with the intention of filing BK, the Trustee will not be happy.  I know two people who were able to save a credit card that way.

That all being said, as soon as the BK shows up on your credit report, you risk them closing your account anyway.  Most cards TOS say that filing BK is an automatic default.  SOME say "You *may* be considered in default if..." YMMV

But, to echo what others have said... None of us are your lawyer, and while we are all here to be helpful and don't intend to steer you wrong, take everything you read from anonymous people behind a keyboard with a grain of salt and verify with your laywer!