Filed Pro Se

[gregorino]

Complete Surrender

Thanks JB and Gramma...It's all listed now...Dernit!

[rrockinggramma]

Credit cards will cancel once you file even with a zero balance owing. However, after a few months you could get a rebuilder card, if the trustee allows you to take on credit. Mine allows up to 1000 without permission.

[justbroke]

That's too bad that you can't keep a credit card even if it has a zero balance. I have 2 cards that I would love to keep before filing, but I don't want to run afoul of the Trustee and have that jeopardize my bankruptcy filing.

You have to see it how other creditors see it. Why should they suffer (and get pennies on the dollar), when you're paying another creditor during the Chapter 13 Plan? That's basically their argument.

I know what you mean though. I wanted to keep my Shell gas card and one of my VISA cards (for travel). Oh well.

[domaingamer]

That's too bad that you can't keep a credit card even if it has a zero balance. I have 2 cards that I would love to keep before filing, but I don't want to run afoul of the Trustee and have that jeopardize my bankruptcy filing.

[justbroke]

Just to summarize and to mention the point of law. You may not leave off any credit account from your schedules that you know of. You must also include "disputed" accounts as well (they have a checkbox for that). Failure to list them could be crucial to getting your Plan confirmed.

Let me explain. First, unless you pay 100% to unsecured creditors, there's no way the Trustee is letting you keep a credit card... even with a $0.00 balance. Just not going to happen (I wanted to keep two of mine, but no luck).

Second, as has been pointed out, the majority of these banks have BK monitoring and will know almost instantly that you filed! Trust me... I know this from experience!

You could work out a re-affirmation for a $0.00 balance card, but only if you're paying 100% of your unsecured Debt. Otherwise, it's a little naive, perhaps, to re-affirm a debt that you could have discharged anyhow.

If you have a hardship case where you need a credit card, you may petition the Trustee. For example, your job may require it for travel (car rentals) and if your employer won't guarantee a card for you, you have no otehr choice. Otherwise, I just don't see it happening.

[gregorino]

Crapoopie!

[StartingOver08]

Funny you should mention that - the card that I told you about in the last post that was so quick to cancel a zero balance was Neiman Marcus!

[gregorino]

OK, S.O. That's kinda what I was afraid of...If I have my store cards (which are not visa/mc) all paid off I wonder if I can leave them off....

[StartingOver08]

My direct experience is this: you can not keep any of the debt off the petition. I had a zero balance card and within just a couple of days of the filing they sent me a notice that they canceled the card due to the BK.

Most of these companies have monitoring of the BK filings.

[gregorino]

Paying Creditors Outside the Plan

I'm plowing through the forms on my way to filing Pro Se on the 22nd. Up to Schedule F and this is where we have a ton of credit cards. I'm hoping to keep a few out of the plan...Dell, who I owe about 3 grand, because we will need at least one, if not 2 new computers in the next five years, and 2 department store cards, each with about 300 bucks, so we can get clothing/shoes for the kid as needed. We also have a $500 line of credit with Bank of America which is real handy for the overdraft protection and food/gas $$ when payday is still a few days away. We have about $400 on that right now, and I'd like to keep that out of the loop as well. Anyone have some direct experience with this? Thanks!

[gregorino]

Thanks again JB....My wife is telling me after this, I should do the online ParaLegal course (24 credit hours) and go into that field! Have you ever thought about that? Makes sense on the term life deal....NOLO just doesn't get specific enough, and the form itself....well, you know! I'm actually a FL resident, but for some reason, the kid's CD is listed in my wife's name, followed by the CUGMA acronym. I'll just leave that be as well, as it does belong to the kid when she's 18 (if she lives that long!!!)

[justbroke]

I'm doing my Schedule B, following along with the NOLO book, and I have a couple questions...First, we have term life..so do we list that in item 9 - Interest in Insurance Policy? NOLO makes no mention. Also, I have a CD for my 13 year old but it's in my name folowed by CUGMA (ABBREV. for a CA. law which enables adults to hold assets on behalf of minor children). So, since it's technically the kids (purchased by her grandpa), does it need to go on Sched B? Thanks!

I don't believe you need to list Term Life policies as they have no "investment" benefit. That is, they have no "cash value" or "equivalent cash value" unless you die. Hence, it's not really an asset. A Whole Life policy does have a cash benefit and is an asset.

For the child's CD, you'll have to look to CA Exemptions. Are you System 1 or System 2? Not that it matters, a Child's CD (assets) are not yours. You are only a custodian / executor over the child's assets. In most States, assets of children are protected from a parent's bankruptcy. The law doesn't seek to punish the minor child.

[gregorino]

Schedule B Questions

I'm doing my Schedule B, following along with the NOLO book, and I have a couple questions...First, we have term life..so do we list that in item 9 - Interest in Insurance Policy? NOLO makes no mention. Also, I have a CD for my 13 year old but it's in my name folowed by CUGMA (ABBREV. for a CA. law which enables adults to hold assets on behalf of minor children). So, since it's technically the kids (purchased by her grandpa), does it need to go on Sched B? Thanks!

[hughthehand]

I finally got confirmed filing pro se. $1050 for 5 years. only thing paid is auto loan(full value-i couldnt cram it down because i bought it within 6 months of filing) interest dropped from 7% to 5%, irs 5% interest(not done with them yet-they're the reason i had to file), credit cards 0--0%. Im just paying two things. I did feel bad about the credit cards. I was never late and had great credit.

[justbroke]

UPDATE

Yes! My appraisal came in BELOW the value of my first mortgage! I have my Motion to Avoid Lien and Determine Secured Status as Unsecured all set. I will be filing it and serving it on the Creditor/Bank on Monday. Wish me luck.

I have other things I want to negotiate with the Bank (holding both notes), so I hope they don't get adversarial. I need them to do a Modification on the arrearages. My Plan works regardless, but the unsecured creditors are NOT GOING TO BE HAPPY.

I'm expecting at least two Objection to Confirmation of Plan filings because my unsecured creditors will go from a first plan of 80%+ to 1% (or slightly more depending). I know it will be a "bad faith" objection. I think I'm covered. I'm protecting my homestead, and that means more than anything else (and seems to have more weight in the Code).