Keep My Zero-Balance Credit Card?

[SoccerDad]

This might be a dumb question from someone in the early stages of research, but...

1. would I be able to keep a credit card after bankruptcy, if it has a zero balance, or would i still be required to include it as part of the Chapter 7?

2. Also, when do you reaffirm a car loan, before or after you file for Chapter 7?

[HHM]

If a credit card has a zero balance, you do not need to list that card in your BK. HOWEVER, whether the card will remain open is entirely up to the creditor. Even if you don't list the card on your BK, most credit cards find out you have filed BK during routine audits and credit report pulls for marketing purposes. AMEX is notorious for closing accounts after the debtor has filed BK even when the card had a zero balance.

For the most part, it is rarely, if ever, in the interest of the debtor to reaffirm a car loan. So long as you keep making the payments, you can keep the car regardless if you reaffirm.

[parsoc48]

"For the most part, it is rarely, if ever, in the interest of the debtor to reaffirm a car loan. So long as you keep making the payments, you can keep the car regardless if you reaffirm."

HHM, Can you explain this for me? On the BK worksheet the choices for each debt were "discharge" or "affirm"; didn't look like I could leave it blank. Is there risk in affirming? On the face of it we should discharge (high mileage, a little upside down, older) but it's been dependable and we like it and my husband doesn't think we could buy anything else at this point.

Thanks, this is a great forum!

[magyar123]

"For the most part, it is rarely, if ever, in the interest of the debtor to reaffirm a car loan. So long as you keep making the payments, you can keep the car regardless if you reaffirm."

HHM, Can you explain this for me? On the BK worksheet the choices for each debt were "discharge" or "affirm"; didn't look like I could leave it blank. Is there risk in affirming? On the face of it we should discharge (high mileage, a little upside down, older) but it's been dependable and we like it and my husband doesn't think we could buy anything else at this point.

Thanks, this is a great forum!

When I filed in 2004, old laws, my lawyer advised me against reaffirming my car loan but just to keep on making my regularly scheduled monthly payments. Her logic was that since it was an older car with high mileage, and still owed more than the car was worth at the time, I could just let them repo the car if it ever breaks down. The loan was discharged, but I kept on making the payments for another 4-5 months when it needed a major overhaul job - which due to no more credit cards I couldn't pay for. Called up the creditor, told them that they can have the car. They hauled it away - never heard from them again.
As far as getting another car is concerned - same day that they hauled the old car away, got another one. True, kind of loanshark level interest rate, but it was possible.

[PaKettle]

"For the most part, it is rarely, if ever, in the interest of the debtor to reaffirm a car loan. So long as you keep making the payments, you can keep the car regardless if you reaffirm."

HHM, Can you explain this for me? On the BK worksheet the choices for each debt were "discharge" or "affirm"; didn't look like I could leave it blank. Is there risk in affirming? On the face of it we should discharge (high mileage, a little upside down, older) but it's been dependable and we like it and my husband doesn't think we could buy anything else at this point.

Thanks, this is a great forum!

Look in the Ch. 7 forum for some recent threads on Reaffirming car loans.

Basically most attorneys now advise not to reaffirm because it is in your best interest to be able to walk away from the car if need be, without it ruining your post-bk credit. The banks rarely (basically "never") repo a car that you are making payments on each month.

Not sure how you deal with it on the forms though. Are you filing pro se? Someone in one of the specific Chapter forums ("7" or "13") should be able to answer that if it doesn't get answered here.