Does it matter if you close accts before you file?

[Anonymous]

I know that accts included in BK are reported as derogatory in credit reports. I have about 5 accts still open with zero balances and I expect that once I file that they will be closed by creditor. Should I close them myself before I file so they have no reason to pull my credit report and have a record of my BK in their system?

I am not planning on reopening them but 10 years from now I might want a Nordstrom card again.

[Anonymous]

I'd close them now. When I exited Chapter 13 successfully earlier this year and applied for a mortgage less than a month later, it was the presence of PIF/closed accounts showing no lates and still reporting (and NEVER bk'd, because they were already closed, thus not derogatory) that both lengthened by credit history and somewhat vitiated the Chapter 13 record, allowing my FICO scores to still be in the acceptable range for an FHA loan.

[Anonymous]

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@Anonymous wrote:

I know that accts included in BK are reported as derogatory in credit reports. I have about 5 accts still open with zero balances and I expect that once I file that they will be closed by creditor. Should I close them myself before I file so they have no reason to pull my credit report and have a record of my BK in their system?

I am not planning on reopening them but 10 years from now I might want a Nordstrom card again.

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I would not close the accounts if they are zero balance.  Just don't use them during your filing.  If you don't IIB, then you stand a chance that 1 or more may leave the accounts opened.  Credit which survives BK is a wonderful thing if you can manage it.

And if some do elect to close now, with a zero balance, this will not affect your ability to get credit with them 10 years later.  Only if you IIB them with a balance will that be a factor.

Closing them provides zero value to you.  Keeping them open provides a lot of potential value.

[Anonymous]

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txjohn wrote:...

I would not close the accounts if they are zero balance.  Just don't use them during your filing....

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Depending on where you are, a bankruptcy trustee may require that you close ALL credit accounts. True, for example, in my area, unless you have prior written approval from the trustee.