bankruptcy and citibank

Discussion in 'Credit Talk' started by question, Mar 25, 2001.

  1. question

    question Guest

    Hello all, I am filing a chapter 7, and I want to keep my Citibank World Platinum, I am current, and have an excellent history with them, but my lawyer told me I had to include everybody in the chapter 7. I want to keep my citi card, and not screw it up, I also want to keep the account open. Would Citi let me, or should I just say screw it and discharge their debt as well, my limit is 7k, and I have the no preset spending limit over that.

    Is it possible if I call citi and offer to keep making payments, that they'll keep the account open. I know during the next AR they'll find out when looking at my credit bureau report that I filed a ch7, and I dont want my account closed b/c of that. BUT..if they are going to close my account b/c I filed chapter 7..then I'll discharge them as well and say the hell with it.

    What I am basically asking, is will CITI let me keep the card, as long as I dont screw them, and if they wont, then I'll write that off as well. Any experiences/suggestions?
  2. sam

    sam Well-Known Member

    Expect citi to raise your rates to some ungodly amount like 23.99% :) They will do it in a heartbeat when they see any new negative info.

    I think you need to transfer the balances to $0 on your citi card, then you may be able to keep it :)
  3. Go back

    Go back Guest

    I suggest you go back and read the previous answers to this question you already asked. Dave gave a very clear explanation.
  4. Bankrupt

    Bankrupt Guest

    I did read what Dave wrote, but my BK atty told me basically screw citibank, it's 7000 in debt i dont need. I told him I wanted to keep the card, he asked why, I told him I wanted a banking relationship with citi, he told me frankly it was stupid...I know I could get another attorney, but I am getting a good deal through a friend on my chapter 7. I want to keep citi, for future banking relationships, I am not worried about the interest rate at all, I plan to pay off the card after the BK, but only if they'll keep the account open, if they wont, there is no incentive for paying it off! And if they wont work with me to keep the account open despite the bk, then I really don't need their business.

    I am not trying in any way to be deceitful, I can pay citi off, but I am not going to unless they work with me, and promise to keep my account open.

    I know some of you will say, if you can do it, then do it, but where is the incentive to pay back 6000 that could be written off, if the bank won't work with you.
  5. Saar

    Saar Banned

    They won't keep your account open. But think one step ahead: if you intend to live after your BK, you better not burn all your (future) banking bridges.

    Let them close your account (w/o the prejudice of an unpaid debt). When your score gets a better, you'd want to be able to give them a call.

    Can you balance transfer your Citi debt to another card? You're not using any out-of-pocket money so your trustee is happy, and Citi would be happy too, since your account would show $0 balance. You might even want to close it yourself after it's paid, so that your credit report would show closure reason: "Closed at consumer's request/ $0 balance", hence an ideal tradeline. Otherwise it would show: "Closed by gradit grantor" - much worse.

    Try to think of it like this: You had good banking relations w/ Citi, but for the next 1-2 years, you two will have to go your seperate ways.

  6. Saar

    Saar Banned

    gredit => credit
  7. Sorry

    Sorry Guest

    Although I have found most of your letters quite valueable, I believe this board was meant to help people build or rebuild their credit not get off not paying their debts by deceptive ways. I have always been impressed with your tips for others, but the above post has gone TOTALLY too far, I no longer respect your way of thinking:(
  8. rick

    rick Well-Known Member

    I filed BK7 on Citibank (and AMEX) and regretted. My bankruptcy is off now (this month!). I'd say, keep your Citibank then see if they find out. If they do, then explain to them you want to stay one of thier customers, and you decided not to file on them. That way you won't burn your bridges with them in the future. I did just as you want to do. I filed on almost everything except I wanted to keep on Mastercard (it was issued by USBank). They did an account review and kept my account open after my BK7. They actually gave me an increase of $2000 2 years after the BK. I had a $5000 credit line throught my 10 yrs...Then in January of this year I got a letter, "After careful review of your credit report.....22% interest and we are lowering your limit to $500". I called them up and told them to go to hell and close my account. I told them that my BK7 would fall off in 2 months, and they didn't care. I was loyal to them, paid an annual fee for over 12yrs, and then that letter. They wouldn't even wait 2 months until my BK7 fell off. I sent them a nasty letter also, I could have screwed them, but chose not to 10 yrs ago. Oh well. I did have a great credit line, and a nice reference for (almost) ten yrs.

    GEORGE Well-Known Member

    JUST your credit limit $5,000 or $500 on your credit reports???

    If they changed it to $500 and your "HIGH BALANCE" is $4,900...THAT WOULD BE A F.I.C.O. KILLER...

  10. Cricket

    Cricket Active Member

    I though you were required to list all your creditors to whom you owe money. If the card had a $0 bal you could not list it. We did that with our Chase cards 1$5000, 1 $1000 and 1 $5000 line of credit. worked just fine. They did not cancel the cards. They will not increase the limits, though. Who cares. 8.9% interest. Hope this helps.
  11. ShyGuy

    ShyGuy Well-Known Member

    you can't leave it out

    Cricket is exactly right -- legally you have to list all of your debts in a Chapter 7. You can't say, "I like this creditor, so I'm not going to include it in the BK." (Believe me, I would have done this.) Plus, all of the included creditors are going to look at your credit reports after they receive notice, and they have the right to challenge your bankruptcy.

    If a card is open with a zero balance, you don't have to list it -- and it will probably remain open, though your credit limit might be lowered. But if you owe, you have to list. You don't have a choice -- and might end up in big trouble if you try something like this.

    Now once any debt is listed, you can try to reaffirm it with the creditor. Some creditors will let you keep a card that way, but I don't know about Citi. And reaffirmation requires the court's approval.
  12. joe

    joe Well-Known Member

    Re: you can't leave it out

    i would like to know
  13. weber

    weber New Member

    avoiding bankruptcy

    i am interested please explain how i can avoid bankruptcy?

Share This Page