Should I keep Target card open or include it in Chapter 13?

[Anonymous]

I am in the process of filing my Chapter 13.  The attorney told me that I only had to include things with a balance, if the card was at a zero balance at the time of filing, it would not be listed.  I have like a $50 balance which I could payoff.  I am wondering if Target would cancel my card anyway once they see I've filed for BK.  Thanks in advance for your advice.

By the way I have been responsible with my Target card.  The $50 charge was a purchase I made last month and plan on paying before the due date.   

[Anonymous]

Any credit that survives BK can only help you.

Even if Target closes your card due to the BK, it won't be included, thus no derogatory history on the account, thus it will be positive for at least 10 years.

Anyone who can carry $0 balance accounts through BK should not IIB, IMO, unless the attorney or court says it is necessary.  Having positive credit age preceding the BK will help a tremendous amount when rebuilding.

IMO.

[credit911]

I guess there is a chance of your BK going unnoticed. I had a Dell account with a $0 balance when I declared BK7. It hadn't been used in about a year before I declared BK so I didn't include it on the filing. A few months after my BK was discharged I got a letter in the mail from them that told me due to my recent BK my account with them was now closed. I don't know how they found out, but I lost my $2500 credit line with them.

[Anonymous]

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@credit911 wrote:
I guess there is a chance of your BK going unnoticed. I had a Dell account with a $0 balance when I declared BK7. It hadn't been used in about a year before I declared BK so I didn't include it on the filing. A few months after my BK was discharged I got a letter in the mail from them that told me due to my recent BK my account with them was now closed. I don't know how they found out, but I lost my $2500 credit line with them.

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But, you still had the TL in good standing (though closed) with its history and age.

[SmallTownGirl]

I definitely recommend keeping the account open if at all possible. As other posters have said already, if they close it after you file and it's not included then it shows as an account in good standing for years. More importantly, if you manage to fly under the radar and have it remain open, you have an account in good standing to positively impact your average age of credit. When I filed BK 13 in 8/05, I had one department store card with a zero balance, and I didn't include it in the filing. That really is helping me now. My average age of accounts is affected by the fact that this one card has been active since 1993, even though any other "good" credit I have is new.

[Anonymous]

Whether or not the card 'survives' your filing, be aware that a condition of your case will be either a limitation on or prohibition of (depends on the district) acquiring any new, non-medical debt without the trustee's permission. It strikes me that having an active, open account could be a temptation that might lead to an involuntary dismissal of your BK.

[Anonymous]

I am contemplating bk due to a foreclosure and I have two cc's, one from BOA which is 8 yrs old, and a new Cap One that is 6 mos old.  BOA has some dings but I will be celebrating a year in Feb with no lates and keeping a low bal...Cap One never late and again low bal.  My main question is does these banks have a time limit to shut off the card after you file?  Both these banks didnt give me a direct NO on whether they will turn them off.  Should I maybe get this stuff in writing?

[Anonymous]

If you have balances, then they must be IIB and the Trustee will dictate what they get paid.

In addition, Ch13 prohibits you from incurring new debt while in the payment plan, therefore it is most likely both accounts will close on you.

[Anonymous]

what if you file a 7? same rules apply?

[Anonymous]

Thanks for the advice.  I paid it off.  I had the funds to do so.  If they close it at least it will be in good standing.