Bankruptcy question

Discussion in 'Credit Talk' started by JB, Jul 16, 2000.

  1. JB

    JB Well-Known Member

    Is it possible to file for bankruptcy but keep a couple of credit cards active if I have no balance on the credit cards?

    Or are all credit cards closed in a bankruptcy? Thanks
  2. dogman

    dogman Well-Known Member

    yup- but- the big card issures will get it later on credit updates and drop you to poor
    risk. Some of my cards are still active and have been increased, perfect pay of course.
  3. JB

    JB Well-Known Member

    Thanks for your response. I have perfect payment on my credit cards. I pay in full every month.
    But my credit cards are Providian and Capital One (both unsecured) and the highest limit is $500.
    Will they drop my cards? I already am being held to something like 25% interest.
  4. dogman

    dogman Well-Known Member

    probably not- I meant Diners Club
  5. smarter th

    smarter th Guest

    seems as if the credit cards banks knew what they were doing charging you 25% interest
  6. lee

    lee Guest

    which bank would give me a credit card after bankruptcy?
  7. Steven Z

    Steven Z Guest

    If under a year

    Net1st (you must have a chequing account)
    First National Bank of Brookings (you must produce pay slips)

    If over a year

    Any number of companies
  8. Peaches

    Peaches Guest

    My husband and I went through a bankruptcy 6 months ago. The court will notify everyone you have credit with regardsless of if you owe them anything or not. It will depend on the company whether they close your account or not.All of our accouts were closed except one.
  9. JB

    JB Well-Known Member

    Thanks Peaches. That was helpful information.
    I am not planning on filing bankruptcy but keep the thought in the back of my mind because of lots of medical bills. I am disabled.
  10. dave

    dave Well-Known Member

    I'm an attorney who practices bankruptcy law. About a year ago, I represented a debtor who filed Chapter 7. Almost all the debts were credit cards and they totalled well-over 100K. We discharged a $10K debt to Capital One. In the course of the bankruptcy proceedings, Capital One offered a new card with a $500 credit limit to help the client get a fresh start! The only hook was that she agree to pay $500 on the $10K debt, the rest would be discharged. She didn't take the deal but this seems to indicate the Capital One may not cancel you especially if the card has a zero balance when you file.

    You should wait at least 120 days after you pay off the card to file. Otherwise the trustee could demand that the credit card company pay the money over to him/her as a preferential transfer. This is based on the idea that you are not allowed to favor one creditor over another by paying one off and then filing bankruptcy.

    No attorney client relationship is intended to be formed by this communication. This is no substitute for advice from an attorney familiar with the particulars of your case and this writer urges you to see an attorney rather than rely on internet posts such as this one to guide the choices you make.
  11. dogman

    dogman Well-Known Member

    Dave - I can see why you appreciated the fact that I have gone full cycle from Chap 13 to Amex in 4 yrs - really 3 1/2 yrs.

    I do not know if AMEX would ever consider someone who had filed against them in any manner- whether it be Chap 7 or Chap 13.

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