About to file 13- Secured Credit Cards

[Argh]

Greetings,
Great board!

About to file 13. I have two secured credit cards.

I owe about 800 on one and about 1000 on the other.

But, I have about 1400 credit on each card to secure them.

Can I pay off the cards and retrieve my savings?

How should I handle them?

Thanks so much for the advice!!!

[HHM]

Why wouldn't the credit card companies not have applied those credits to your outstanding balance already?

[Argh]

Current on bills

Thanks for replying!

Because I am current on all my bills and have been for years. I'm only filing to discharge a heavy debt to the IRS/FTB.

What do you think I should do regarding those cards? Can I pay them and close out the accounts?

Thanks again.

[Annika]

I'm only filing to discharge a heavy debt to the IRS/FTB

I'm sure someone will correct me if I'm wrong, but I didn't think taxes could be discharged? Ours weren't. Maybe there's something I don't know ...

[Argh]

The last three years of IRS debt (three years based on your date of filing) are not dischargeable. It is those years that I will be paying off in a 13. The tax liability for prior years will be discharged.

[HHM]

Wait, (1) you have $1400 of credits (i.e. they owe you $1400), or (2) you have $1400 of available credit on those cards (i.e. you can charge an additional $1400). I still don't understand exactly what you are asking. If option 1, why the hell are you paying to a card that owes you money, simply have them apply the outstanding amount they owe you to the balance owed on your card.

Anyway, in a chapter 13, as with any bankruptcy, you don't just file on certain debts, you need to account for all your debts. How you treat each debt under the chapter 13 plan will vary, but every creditor gets listed in your bankruptcy petition and is categorized in some manner on your chapter 13 plan.

[StaciMM]

My guess is that the overage (deposit left after balances are paid) will become part of the BK estate, but a 13 w/ assets to distribute isn't the norm, right?