I have a question for a friend who is considering filing CH. 7 bankruptcy. She has about 6 credit cards which are the main problems with her financial state. I have "coached" her a little since about what to expect and how she can get things "in order" before filing since I have been through it. Her main concens involve a Capital One card, a Best Buy card, and a Dell credit card. The balance on the Cap1 card is $300. Because she would like to have at least one credit card after bankruptcy, she is considering paying it down to zero so that they are not put on the list of creditors. My concern is that after paying that card off and then filing Ch. 7, Cap1 may discover her filing and close the account themselves. If that is the case, I would rather see her just include the $300 in the filing. Next on Best Buy....I know they claim all of the items purchased with their card are secured. Does anyone have any knowledge or experience with dealing with Best Buy in a bankruptcy? There was about $2500 worth of purchases put on the card in September(I told her not to file for 6 months out from then) and you could feasably say that the items will significantly depreciate or "be sold at a garage sale" over the next 5 months or so. Will Best Buy try to recover the items? What if she says she sold them at a garage sale? I know that saying they were gifts to someone is out. Any opinions? Finally, Dell. A $1500 laptop was purchased in July 2003. There is no way that thing will be worth $1500 come April 2004. Any knowledge or experience with Dell credit trying to recover the item? Thanks in advance.
I am NOT an expert by any means, although I am considering BK 7 for myself right now. I would think that she has to make good and damn sure to include any large items she's purchased in her list of assets to avoid any suggestion of fraud, and then claim them in the personal exemptions as allowed by her state. Again, I don;t have any direct experience so I may be completely wrong. Poochie
No knowledge of Dell's practices. You are right about waiting a while with Best Buy. It might not happen, but the trustie could get nasty about the recent purchases. There is info in the BK forms that deals with such. Also, any payment to a creditor such as Cap one, totaling a certain amount (my failing memory from over a year ago thinks it is around $250) must be reported. I filed with two Best Buy accounts, one for me, one from my Ex, Best Buy (Household Bank) didn't say a thing.
I can tell you too, that for some reason my Chevron missed being added to the list of Bk filing and we retained it with about a $8.00 balance. It was in good standing, never late, and we still have it open and use it. We also had a JCP with a 0 balance which I immediately went out and started using to show payment history as well as a Kay Jewelers, hoever I returned the Jewelry about 30 days later, but it shows as a payment and now 0 balance. I also opened a secured card with American ONline Bank, reports to all 3, updates every 30, 17% interest, ficos are 677, 725, and 732. Filed Bk in May 2002, discharged August 2002.
Curious... How did you get your current score of 677/725/732 that high a year and a half later from discharge? What was your FICO score right after your discharge? I filed for BK7 April 2003 and was discharged July 2003. Just got American Pacific secured visa ($300) few days ago. and my Equifax score is currently 546 (WITHOUT American Pacific Bank being there *YET*) (right after discharge it was 511) Thanks for your answer! Thomas
A note about Dell (Dell Financial Services (DFS)): The credit agreement for the Dell Preferred Account currently mentions nothing about a security interest being retained by DFS in goods purchased using the Dell Preferred Account. Some older credit arrangements with DFS did grant them a security interest in the goods financed. Tim
I have been working with a credit repair firm. Started in October 2002. My fico started at 573, 579, 581 and that was with a pending foreclosure. I ended up being able to save my house. Thus far working with the credit repair, I have 28 deletions, 3 in progress and 13 in dispute. I have never had one returned to my CR's. I don't think those are bad numbers after one year. I just don't have time to sit and do all the paper work, letter writing and tracking for all 3 CR's. I gladly pay someone to do it for me and No, it's not Lexington Law.
FYI, I have also been using Stephen Snyder's Credit After Bankruptcy which gives great direction and info. This book deals with REBUILDING credit, not so much credit repair. He is in the process of releasing a new book after the first of the year about repairing credit. He in honest, to the point and file BK himself for over $188,000. You can check out his site, www.afterbankruptcy.org. Check out his tour log, if you are lucky enough to be near one, they are fabulous and full of sooooooo much info. He is doing video seminars at this point because he is trying to get his book finished and has started a magazine called Bankrupt, which will be sent in a plain brown wrapper, LOL. He also tries to have local businesses( that will not screw you) that he has interviewed and checked out that will help people who have filed Bk. Ford auto, local banks, mortgage companies, credit repair, a tax attorney he highly recommends, etc... just can't list all of it. The credit repair company I use is Bradley Ross Law. www.bradleyrosslaw.com. I have had one case analyst the whole year, I send emails in the evening so I get answers the next morning. They are efficient, diligent, and I am getting great results. I love reading all the posts here, and get alot of tips and help regarding rebuilding, using different companies that are or are not BK friendly, etc. I have a friend who had filed several years ago and now I can help and give pointers etc. There are some people on the boards who make me feel like using a credit repair firm is a cheater's way out, wasting my money etc. but I just don't have the hours it takes. I wish I did, but I get great joy from seeing the results on this board and the others when I do have time to read them.
Re: Re: Cap1 & Best Buy & filing Ch. 7 I read that book too. It is really pretty good at giving some practical advise and examples. I got several ideas from him. Interestingly, I e-mailed him a couple of times about a year ago with some questions. When I told him I was in the process of cleaning up my credit report, he e-mailed me back to tell me how big of a mistake I had made. He said this could only be done by a good credit attorney and the damage I had already done would probably haught me with low scores for years to come. Kind of pissed me off. Now, I have only to say ... Solid 700's -- read 'um and weep!
Re: Re: Cap1 & Best Buy & filing Ch. 7 That's great that you are having good results. I am sure he is speaking of his experience in which he screwed himself royally by sending his Bk papers to the CR. He is dealing with Experian still today because of that mistake, so I understand the comment. I just took a refresher course when his seminar was here in town and gained much new information. I am just glad that there is someplace to go to repair credit, ie, bradleyross, and that I am getting great info about rebuilding my credit from this board and a couple of others. I just thought I'd have to live without credit and crappy credit once I had filed. I am glad I didn't just sit back and wait, that I'd rec'd in the mail the seminar invite, which I almost didn't go to. I would never haveknown anything about credit, credit repair, credit bureaus etc. Your fico has come a long way, good luck to you.........
Dell Financial Services is backed by CIT online Bank. They are NOT secured. I filed BK against them earlier this year. Not a bit of trouble from them.
