I have been in the process of buliding my credit over the last year and had 2 secured credit cards - discover & cap one. My credit card debit was minimal and most of it was on secure cards. I had a lot of medical & charge offs debts from being unable to pay things (comcast, verizon etc.) in the past. I was stuck in an upside down 30% interest rate loan and opted to finace a new car (@ 10%) and let my old car go to repo last year. This caught up with me last week when I was hit with a wage garnishment for the 7k debt. I worked qucikly with a bankruptcy attorney to get my chapter 7 filed yesterday and stop any further garnishments. However, I was unable to close my secure cards before then. Both cards are over their limits by about $50. I'm wondering if I should go ahead and pay the amounts that won't be covered by my secrutiy deposit. Or if they'll view it as a burn either way. I really want to be able to get a discover card again.
Your best bet is to pay the over limit balance and close them out before you file. This way it will show closed by consumer on your reports and that will open a better chance after BK to get back in so they weren't burned. $30 is not a a lot of money to possibly have a better chance to get back in and not burn them. Plus you'll get your security deposit back. Good Luck!
I re-read you post. I didnt catch you already filed. It was way early and just got up. Many have been able to get back in with those 2 about a year out afte burning them for thousands. It may be a bit easier or harder to apply. You'll be getting back your deposits on the cards minus the $30 for the one card. One will be burned the other probably close due to the BK. Too bad you didnt catch it in time.
Welcome to the forum! You're definitely in the right place. Since you have already filed chapter 7 on the 6th, I would consult your attorney before you make those payments. Every state has different laws regarding bankruptcy. Where I am it could cause your bankruptcy to be dismissed because you're making on debt after you filed. Your lawyer is the best reference on this issue.
With regards to Discover, you will get back in with them. With Discover it can be hit or miss. Some get approved a year after BK, some people like me, it takes years.
Hang in there. It will get better.