cancel
Showing results for 
Search instead for 
Did you mean: 

Leaning Toward Chapter 7 -- Do I Burn Everything?

tag
mysterythemoon
Regular Contributor

Leaning Toward Chapter 7 -- Do I Burn Everything?

I've dug myself into a pretty big hole and will almost certainly have to burn some of the biggies (Amex and Chase). However, I only owe $600 to Disco and $800 to WF (where I also have my checking account). Can/should I exclude them from the BK? My thinking is that both aren't for a lot of money at all, I'll want to have a relationship with some CC company down the line (Disco) and as for WF, I don't want them to close my bank account. Any help is appreciated.

Started on July 4th, 2016 with 400's FAKO scores, no FICO, a dozen baddies and no credit of any kind.

As of March 2018, Before The Fall:
AmEx Blue Cash Everyday: $12,600
Chase Sapphire Preferred: $10,000
Bank Of America BankAmericard: $6,000
Capital One Quicksilver One: $5,500
Citi Diamond Preferred: $5,400
NFCU Cash Rewards Visa Signature: $5,100
NFCU Go Rewards MasterCard World: $5,000
Wells Fargo Propel: $3,500
Barclay's Uber Visa: $2,500
AmEx Starwood Preferred Guest: $2,000
Citi Double Cash: $1,500
AmEx Hilton Honors: $1,000
Discover It: $600
Capital One Platinum: $500

TOTAL 2018 CREDIT LINE: $61,200

JUNE 2023 UPDATE
2020: COVID toppled me. All old accounts went into default. Business lost. Car repossessed.
2021: Cap1 let me back in (one secured/two not). Secured Mission Lane. AU on AMEX Gold, Citi Premier and Chase Sapphire. Car loan approved without cosigner for $20,000. All current.
Currently: No lawsuits. Thinking most SOL have expired on CC debt. Fingers crossed my math and memory are correct.

CURRENT SITUATION:
Mission Lane Secured: $3,400 (SL $400 -- unasked for CLI)
Capital One Secured: $300
Capital One QS1: $300
Capital One Savor: $1,000
Chase Sapphire Preferred: $10,000 (AU)
AMEX Gold: No Preset Limit (AU)
Citi Premier: $8,500 (AU)

SPRING 2026
ALL BADDIES DROP
Message 1 of 16
15 REPLIES 15
FireMedic1
Community Leader
Mega Contributor

Re: Leaning Toward Chapter 7 -- Do I Burn Everything?

You will lose all your cards in BK. None can be excluded. Even if they werent included. They'll know. It is advised here on the forum to switch banks especially with a bank thats going to be burned for their CC. Sorry you have to go thru this but tha'st the way BK works. Many on here have had to make the dreaded decision to file. But down the road. Things will come back. The biggies will ban you for years. Disco is forgiving after a year or more. And yes its time to find another bank just to be safe. I hope it all goes smooth for you. Its a tough choice. But life throws hard balls at us. And as they say. The strong survive. It will work out down the road. Good luck in whatever you chose.


Message 2 of 16
Shooting-For-800
Senior Contributor

Re: Leaning Toward Chapter 7 -- Do I Burn Everything?


@mysterythemoon wrote:

I've dug myself into a pretty big hole and will almost certainly have to burn some of the biggies (Amex and Chase). However, I only owe $600 to Disco and $800 to WF (where I also have my checking account). Can/should I exclude them from the BK? My thinking is that both aren't for a lot of money at all, I'll want to have a relationship with some CC company down the line (Disco) and as for WF, I don't want them to close my bank account. Any help is appreciated.


You can not exclude anyone from BK.

How big of a hole?

Most banks will settle for 20% - 60% of balances.

You can pay off Disco and WF before filing for BK just make sure it is a few months after pay off.

NEVER leave your money in checking account if you owe that bank anything for any reason and file for BK.

 

BK works but it is not the only option in many cases.

Want to share some data?

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $500k unsecured credit in 2024.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!



Message 3 of 16
mysterythemoon
Regular Contributor

Re: Leaning Toward Chapter 7 -- Do I Burn Everything?

I know all my card will be gone. I was thinking in terms of a future relationship. Not burning Discover and Wells Fargo would help me down the line. At least that's what I wondering. 

Started on July 4th, 2016 with 400's FAKO scores, no FICO, a dozen baddies and no credit of any kind.

As of March 2018, Before The Fall:
AmEx Blue Cash Everyday: $12,600
Chase Sapphire Preferred: $10,000
Bank Of America BankAmericard: $6,000
Capital One Quicksilver One: $5,500
Citi Diamond Preferred: $5,400
NFCU Cash Rewards Visa Signature: $5,100
NFCU Go Rewards MasterCard World: $5,000
Wells Fargo Propel: $3,500
Barclay's Uber Visa: $2,500
AmEx Starwood Preferred Guest: $2,000
Citi Double Cash: $1,500
AmEx Hilton Honors: $1,000
Discover It: $600
Capital One Platinum: $500

TOTAL 2018 CREDIT LINE: $61,200

JUNE 2023 UPDATE
2020: COVID toppled me. All old accounts went into default. Business lost. Car repossessed.
2021: Cap1 let me back in (one secured/two not). Secured Mission Lane. AU on AMEX Gold, Citi Premier and Chase Sapphire. Car loan approved without cosigner for $20,000. All current.
Currently: No lawsuits. Thinking most SOL have expired on CC debt. Fingers crossed my math and memory are correct.

CURRENT SITUATION:
Mission Lane Secured: $3,400 (SL $400 -- unasked for CLI)
Capital One Secured: $300
Capital One QS1: $300
Capital One Savor: $1,000
Chase Sapphire Preferred: $10,000 (AU)
AMEX Gold: No Preset Limit (AU)
Citi Premier: $8,500 (AU)

SPRING 2026
ALL BADDIES DROP
Message 4 of 16
FireMedic1
Community Leader
Mega Contributor

Re: Leaning Toward Chapter 7 -- Do I Burn Everything?

If you paid 3400 dollars to pay off Disco and WF. You'd have to wait 90 days + before filing. Its called prefferential treatment anything over $600 dollars.If you make payments of over $600 in aggregate to a creditor in the 90-day period prior to your filing date while you are insolvent (meaning your debts exceed your assets) and that payment allows the creditor to receive more than it would otherwise have through your bankruptcy, it is a preferential debt payment. Also, keep in mind that bankruptcy law presumes you are insolvent during the 90-day period prior to bankruptcy. As a result, the trustee does not have to prove insolvency in most cases.


Message 5 of 16
mysterythemoon
Regular Contributor

Re: Leaning Toward Chapter 7 -- Do I Burn Everything?

Thanks for explaining it to me. Really appreciate it. 

Started on July 4th, 2016 with 400's FAKO scores, no FICO, a dozen baddies and no credit of any kind.

As of March 2018, Before The Fall:
AmEx Blue Cash Everyday: $12,600
Chase Sapphire Preferred: $10,000
Bank Of America BankAmericard: $6,000
Capital One Quicksilver One: $5,500
Citi Diamond Preferred: $5,400
NFCU Cash Rewards Visa Signature: $5,100
NFCU Go Rewards MasterCard World: $5,000
Wells Fargo Propel: $3,500
Barclay's Uber Visa: $2,500
AmEx Starwood Preferred Guest: $2,000
Citi Double Cash: $1,500
AmEx Hilton Honors: $1,000
Discover It: $600
Capital One Platinum: $500

TOTAL 2018 CREDIT LINE: $61,200

JUNE 2023 UPDATE
2020: COVID toppled me. All old accounts went into default. Business lost. Car repossessed.
2021: Cap1 let me back in (one secured/two not). Secured Mission Lane. AU on AMEX Gold, Citi Premier and Chase Sapphire. Car loan approved without cosigner for $20,000. All current.
Currently: No lawsuits. Thinking most SOL have expired on CC debt. Fingers crossed my math and memory are correct.

CURRENT SITUATION:
Mission Lane Secured: $3,400 (SL $400 -- unasked for CLI)
Capital One Secured: $300
Capital One QS1: $300
Capital One Savor: $1,000
Chase Sapphire Preferred: $10,000 (AU)
AMEX Gold: No Preset Limit (AU)
Citi Premier: $8,500 (AU)

SPRING 2026
ALL BADDIES DROP
Message 6 of 16
FireMedic1
Community Leader
Mega Contributor

Re: Leaning Toward Chapter 7 -- Do I Burn Everything?


@Shooting-For-800 wrote:

@mysterythemoon wrote:

I've dug myself into a pretty big hole and will almost certainly have to burn some of the biggies (Amex and Chase). However, I only owe $600 to Disco and $800 to WF (where I also have my checking account). Can/should I exclude them from the BK? My thinking is that both aren't for a lot of money at all, I'll want to have a relationship with some CC company down the line (Disco) and as for WF, I don't want them to close my bank account. Any help is appreciated.


You can not exclude anyone from BK.

How big of a hole?

Most banks will settle for 20% - 60% of balances.

You can pay off Disco and WF before filing for BK just make sure it is a few months after pay off.

NEVER leave your money in checking account if you owe that bank anything for any reason and file for BK.

 

BK works but it is not the only option in many cases.

Want to share some data?


OP had $61,200 bottom of their post.


Message 7 of 16
mysterythemoon
Regular Contributor

Re: Leaning Toward Chapter 7 -- Do I Burn Everything?

Those were actually my credit limits. I have 46k in credit card debt.

Started on July 4th, 2016 with 400's FAKO scores, no FICO, a dozen baddies and no credit of any kind.

As of March 2018, Before The Fall:
AmEx Blue Cash Everyday: $12,600
Chase Sapphire Preferred: $10,000
Bank Of America BankAmericard: $6,000
Capital One Quicksilver One: $5,500
Citi Diamond Preferred: $5,400
NFCU Cash Rewards Visa Signature: $5,100
NFCU Go Rewards MasterCard World: $5,000
Wells Fargo Propel: $3,500
Barclay's Uber Visa: $2,500
AmEx Starwood Preferred Guest: $2,000
Citi Double Cash: $1,500
AmEx Hilton Honors: $1,000
Discover It: $600
Capital One Platinum: $500

TOTAL 2018 CREDIT LINE: $61,200

JUNE 2023 UPDATE
2020: COVID toppled me. All old accounts went into default. Business lost. Car repossessed.
2021: Cap1 let me back in (one secured/two not). Secured Mission Lane. AU on AMEX Gold, Citi Premier and Chase Sapphire. Car loan approved without cosigner for $20,000. All current.
Currently: No lawsuits. Thinking most SOL have expired on CC debt. Fingers crossed my math and memory are correct.

CURRENT SITUATION:
Mission Lane Secured: $3,400 (SL $400 -- unasked for CLI)
Capital One Secured: $300
Capital One QS1: $300
Capital One Savor: $1,000
Chase Sapphire Preferred: $10,000 (AU)
AMEX Gold: No Preset Limit (AU)
Citi Premier: $8,500 (AU)

SPRING 2026
ALL BADDIES DROP
Message 8 of 16
Hex
Valued Contributor

Re: Leaning Toward Chapter 7 -- Do I Burn Everything?

If you have enough money to pay Disco and Wells Fargo and can wait 90 days you could pay those two and close them yourself. At least that way you wouldn’t have to include them in your bankruptcy.
Message 9 of 16
mysterythemoon
Regular Contributor

Re: Leaning Toward Chapter 7 -- Do I Burn Everything?

Wouldn't waiting to file hurt my future credit even more? Turning 30 day lates into 90 or 120 day lates on the other cards?

Started on July 4th, 2016 with 400's FAKO scores, no FICO, a dozen baddies and no credit of any kind.

As of March 2018, Before The Fall:
AmEx Blue Cash Everyday: $12,600
Chase Sapphire Preferred: $10,000
Bank Of America BankAmericard: $6,000
Capital One Quicksilver One: $5,500
Citi Diamond Preferred: $5,400
NFCU Cash Rewards Visa Signature: $5,100
NFCU Go Rewards MasterCard World: $5,000
Wells Fargo Propel: $3,500
Barclay's Uber Visa: $2,500
AmEx Starwood Preferred Guest: $2,000
Citi Double Cash: $1,500
AmEx Hilton Honors: $1,000
Discover It: $600
Capital One Platinum: $500

TOTAL 2018 CREDIT LINE: $61,200

JUNE 2023 UPDATE
2020: COVID toppled me. All old accounts went into default. Business lost. Car repossessed.
2021: Cap1 let me back in (one secured/two not). Secured Mission Lane. AU on AMEX Gold, Citi Premier and Chase Sapphire. Car loan approved without cosigner for $20,000. All current.
Currently: No lawsuits. Thinking most SOL have expired on CC debt. Fingers crossed my math and memory are correct.

CURRENT SITUATION:
Mission Lane Secured: $3,400 (SL $400 -- unasked for CLI)
Capital One Secured: $300
Capital One QS1: $300
Capital One Savor: $1,000
Chase Sapphire Preferred: $10,000 (AU)
AMEX Gold: No Preset Limit (AU)
Citi Premier: $8,500 (AU)

SPRING 2026
ALL BADDIES DROP
Message 10 of 16
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.