Good standing accounts being closed

[teerx79]

I just filed for Chap 13 2 weeks ago. I am repaying $500 month for 60 months. I logged on to pay an account I was planning on keeping but have found the account closed by the credit grantor. I called customer service and was told the account was being handled by the BK department.

I have had this credit card for 7 years and have always paid it on time. I did not include it in the filing and was hoping to retain it as it is my only remaining account open. Also, my Sam's Club credit account was closed though there is a negative balance in it.

I am confused. I re-organized my debt and am paying it back but yet all my accounts are being closed. Any thoughts or experiences?

[HHM]

The bankruptcy code REQUIRES that you list anyone to whom you owe money on the petition. Bankruptcy does not allow you to pick and choose.

Simply amend your petition to add this creditor.

[justbroke]

I am confused. I re-organized my debt and am paying it back but yet all my accounts are being closed. Any thoughts or experiences?

As HHM writes, all your accounts are closed. Many of these accounts get closed automatically, regardless of whether you listed them.

[teerx79]

The two accounts in question did not have a balance on them and actually one of them owed me money back.

Just found out also that all my accounts with USAA have been closed. I have been a member since 1977. Not sure what I am going to do now but pray I don't end up living in the Tent City here in Tampa Bay. My net take home isn't going to cover re-payment plus current living expenses.

If I were Chrysler I'd be able to get a $25 billin dollar loan and file bankruptcy.

Thanks for your inputs and experiences in this. I am finished.....

[HHM]

Did you file with an attorney?

The whole point of a chapter 13 is to make 1 payment for your debt and have enough for living expenses, and to stop using credit.

Ok, so if the accounts had a zero balance, you did not need to list them in your petition, but they find out about your BK anyway, and as you discovered, 9 times out of 10, the close the account (this should have been expected).

[klandsb]

HHM.. If they come up with a Chapter 13 repayment plan that u just dont think w/work for you what are your options at that time ?????????
Just curious, I am about to file and have this huge fear that my pmt w/be outrageous and living on rice & beans for 5 yrs

[HHM]

Your attorney and you come up with the initial plan. Chapter 13's are designed to be very livable. The problem many people have is they are unwilling to make the "simple" changes to make it work. Will you be living on rice and beans, no, but will you have to stop shopping at Whole Foods Market, YES.

[klandsb]

HHM. I stopped using credit cards last Sept and have been living a cash only life ... It was a huge adjustment at the time but I am making it.. Sometimes it tougher than others.. Life when my car needs rotors & brakes and I just dont have the cash avail..

I guess I will just have to wait and see... I have roughly 35,000 in cc debt. Hse & car pd up to date. Low % paid to trustee in PA... I am just hoping I am making the right choice. At this point it seems to be my only choice.

[teerx79]

HHM, you so smart, Thank you. Yes, I did file with an attorney. Received a letter from BK court with date for meeting with creditors today. They also mentioned that they haven't received the court fees nor the proper documention for Chap 13. So, I am thinking about amending things since I have to re-file. I have paid the attorney in full including the court fees. Grr.

I fore-see my income dropping well below the 50k I currently make so I am not sure how that is goiing to affect things.

This whole process angers me as if the EX would have re-financed as she was ordered to, I wouldn't be in this boat. But I am here now and need to find a comfortable place to sit for a long time.

[woeisme]

the thing is, in BK you are not allowed to take on any debt without trustee approval. This means you are NOT ALLOWED to have any open credit accounts. Plus, in this economy especially, filing BK means you have serious financial problems, why wouldn't your creditors close your accounts? If they allow you to run up debt while you are in a CH 13, they can't make you re-pay it for the 5 years you are in BK because of the automatic stay forbids them from attempting to collect a debt from you, as all your disposable income is slated for the trustee. Sorry your lawyer didn't warn you that this would happen, but if you start saving whatever you can, that can be your emergency fund for life's unexpected happenings. Good luck! it's not an easy process, but will be worth it all in the end.

[DSIG]

The two accounts in question did not have a balance on them and actually one of them owed me money back.

Just found out also that all my accounts with USAA have been closed. I have been a member since 1977. Not sure what I am going to do now but pray I don't end up living in the Tent City here in Tampa Bay. My net take home isn't going to cover re-payment plus current living expenses.

If I were Chrysler I'd be able to get a $25 billin dollar loan and file bankruptcy.

Thanks for your inputs and experiences in this. I am finished.....

Did USAA actually 'close' your accounts or terminate your online access? I had a little chat with their bk department about 1 month before I filed and they told me that they restrict online access but that I can keep my accounts which are in good standing. Just curious what happened to your accounts.

[livnlow]

If all accounts are closed, even those with no balance, how do you book flights, rent cars, reserve hotels?

[DSIG]

If all accounts are closed, even those with no balance, how do you book flights, rent cars, reserve hotels?

You can use your debit card for some items but the car rental, for example, will not accept a debit card. You have to effectively begin rebuilding your credit immediately after you file by getting secured loans an applying for cards which cater to consumers who filed for bankruptcy. Save save save for the things you want and dont rely too heavily on credit.

[forgotten]

You can use your debit card for some items but the car rental, for example, will not accept a debit card. You have to effectively begin rebuilding your credit immediately after you file by getting secured loans an applying for cards which cater to consumers who filed for bankruptcy. Save save save for the things you want and dont rely too heavily on credit.

You can not apply for credit or take on any non-emergency debt durring a chapter 13 without prior trustee approval (which you aren't going to get so you can rebuild your credit).

You can do almost anything with a debit card now. Most car rental companies (not all) now accept debit cards, they may place a larger hold amount on the card however.

[DSIG]

I probably should take this to the credit rebuilding section of the forum but I'll ask it here since its relavant. I take it that rebuilding credit by way of applying for unsecure or even secure credit cards is not possible during a 13. So, what if you are added as an authorized user on an account? Or is this only a short term strategy and doesnt help much?