Creditor reaffirmation?

[3131tj]

Has anyone done a reaffirmation with a credit card company before filing? If so, how was the process for you and did you have much luck? I know there will be great variables in everyone's situation, but it was something that was suggested to me so am just curious
thanx

[edwards2]

I tried to with 2 cards and they turned us down. One was a national clothing store and the other was a major gas company. We didnt owe anything either - they said they did not do BKs.

[HHM]

You don't reaffirme BEFORE filing your case, and any such agreement would not be enforceable anyway.

Don't bother reaffirming with credit cards, you will be able to get others. If there is a card you want to keep, pay off the balance (if you can) and don't list it, then file BK.

[3131tj]

Hhm

thanks for that. I am leaning toward paying off and not listing but wondered about the "preferential treatment" that this might appear as - paying off one and not another. Would the 90 day wait take care of that?

[HHM]

It depends on the balance, if you paid off at less than a $1,000 it propbably wont be an issue, if its more like 2000-3000+, the trustee may get interested, and the other question gets raised, "where did you get the money?"

And whatever you do, absolutely DO NOT pay off a card with a balance transfer from another card.

[3131tj]

And whatever you do, absolutely DO NOT pay off a card with a balance transfer from another card.

that's what I was going to do. I was looking at it this way: I have a high interest on Card-X with a balance of almost $5000. Card-Y has 0% transfer until January 2006 and Card-Z offers a 4.9% transfer until that balance is paid off. I was going to split the balance to Card-X b/t Cards Y & Z. My effort would be to try and make my payments more manageable by doing this, whihc it would in almost wiping out that payment to Card-X. If it still is not manageable a few months from now I would have to file.

thoughts?

[HHM]

that's what I was going to do. I was looking at it this way: I have a high interest on Card-X with a balance of almost $5000. Card-Y has 0% transfer until January 2006 and Card-Z offers a 4.9% transfer until that balance is paid off. I was going to split the balance to Card-X b/t Cards Y & Z. My effort would be to try and make my payments more manageable by doing this, whihc it would in almost wiping out that payment to Card-X. If it still is not manageable a few months from now I would have to file.

thoughts?

Well, if your wililng to wait AT LEAST six months between the time you do the balance transfer and file bankruptcy then maybe, but otherwise, the credit card company that absorbed the balance will object to discharge.

You need to make the decision of whether you are going to file BK or not. If not, than balance transfers to lower interest rate cards is not a bad idea, but if you turn around and file BK after a balance transfer, your bankruptcy will be very troublesome.

[3131tj]

OK, thanks...will have to think about this as I would like to file before the October change simply to avoid the insanity that will probably be going on in the courts by then.

[HHM]

Just realize, nothing will screw-up your bankruptcy more than balance transfers between credit cards on the eve of bankruptcy.

[3131tj]

hmmm, I guess I would think that it would be seen as an attempt to manage bills before having to file (otherwise they would have just filed), but I will heed your warning and just try to bring myself to go ahead and do it (file, not transfer ;)