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Reaffirm Credit Card

New Visitor

Reaffirm Credit Card

Getting ready to file BK7, is it a good idea to reaffirm a CC with small balance on it, 2K to use post BK. I’ve had the card over a decade.
Message 1 of 7
6 REPLIES
Established Contributor

Re: Reaffirm Credit Card

You Cannot Reaffirm a Credit Card

 

 

*There is not a bankrucpy attorney, nor a bankrucpy trustee / judge that will condone that.

 

PLUS the credit card company will most likely auto close your account anyway.   

 

Just apply for a credit card after bankrucpy is discharged. 

Excuse the Typos - usually responding via mobile.
















Message 2 of 7
Valued Member

Re: Reaffirm Credit Card

I strongly thought about this at one point too. I would suggest you not reaffirm any credit cards and if possible any other debt. Chapter 7 should be a fresh start. You can get another one. Just my two cents. I'm also in the process of filing, best of luck.

Discover More:12,5k
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Message 3 of 7
Community Leader
Super Contributor

Re: Reaffirm Credit Card


@neoanderson1 wrote:

I strongly thought about this at one point too. I would suggest you not reaffirm any credit cards and if possible any other debt. Chapter 7 should be a fresh start. You can get another one. Just my two cents. I'm also in the process of filing, best of luck.


Theres no suggesting here of any kind, you cant reaffirm a CC.....period. All debt, all cards, go into the Bk pot.  You cant pick and choose who you want left out, its called showing prefferential treatment which isnt allowed, and can actually get your BK tossed out. 


Scores held down by umpteen INQ & New accounts, and a paid off loan and new loan reporting.
~~~BK7 d/c-08/2013......my rebuild worked for me, but won't necessarily work for you.~~~
Message 4 of 7
Frequent Contributor

Re: Reaffirm Credit Card

I'm a bit confused by the responses. Why is it impossible to reaffirm a credit card? Although it's generally unwise, I know of no process that limits reaffirmations to loans. If a debtor wanted to reaffirm credit card debt, what's to stop her?

 

As far as preference goes, that would certainly apply to payments pre-filing. Preferential payments could be reallocated by the trustee. But a post-filing reaffirmation agreement is not the same as a pre-filing preferential payment. 

 

A few good reasons NOT to reaffirm credit card debt include: 1) There isn't a guarantee the card issuer won't close the account (unless it's part of the agreement); and 2) There's no guarantee a reaffirmed card will continue to report to credit reports. If this is the main reason one seeks a reaffirmation, then the efforts may be wasted; and 3) NOT reaffirming debt means starting post-discharge without debt, which often defeats the purpose of filing bankruptcy.

 

If you're concerned about burning a creditor, you're free to make payments post-discharge for debt that was included in bankruptcy (also generally not advised) ... at your own pace, and may discontinue doing so with no reprecussion. If you reaffirm a debt and later have a financial troubles (e.g. job loss or disability), late payments on reaffirmed debt can come back to bite you in the butt. Why do it?

Message 5 of 7
New Member

Re: Reaffirm Credit Card

There is no reason to reaffirm a credit card. The credit card issuer will close your account usually within a few weeks or shorter from the time you file BK. Even if you don't list them in the BK. The one poster was correct that you can't pick and choose a credit card you wan't to leave out of BK. That can get your BK tossed out of court.

Message 6 of 7
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New Visitor

Re: Reaffirm Credit Card

Thanks for the input guys.
Message 7 of 7