Filed Pro Se

[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!

[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]

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]

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]

Crapoopie!

[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.

[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]

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.

[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.

[gregorino]

Complete Surrender

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

[gregorino]

Question about the "Codebtor" thing...

I'm filing Pro Se and it's actually going to be under my wife, filing individually.
All of our unsecured credit cards are in her name and the mortgage is in her name as well. I have not listed any codebtors anywhere so far on the schedules, and do not intend to do so. Does anyone have any thoughts contrary to that? Thanks!

[justbroke]

I have not listed any codebtors anywhere so far on the schedules, and do not intend to do so. Does anyone have any thoughts contrary to that? Thanks!

So long as none of the debts that you list on the schedules have a joint debtor, you are okay.

Say, she has a VISA in her name onme only, then you don't list that. If you have a VISA in your name but she's a co-signer/co-applicant, then you must list it.

Other than that... you would have no co-debtors.

[gregorino]

Thanks once again JB....Maybe you could just come stay with us for a week...

[gregorino]

401(k) loan repayment

My wife pays $500 month to a 401(k) loan she took out a few years ago. Should this be listed on a Schedule? Schedule F - Unsecured Creditors or maybe Schedule G - Executory Contracts? Any ideas would be welcome!

[gregorino]

Statement of Affairs

Oy Veh!
Another form, another question....JustBroke, maybe I could just pay you! You really seem to have a great handle on this stuff!

My wife and I had 2 LLC's in Florida which are now ka-put. We ran up most of our credit card debt for living expenses while we were trying to get the business profitable...
Anyway, I'm up to the statement of financial affairs which covers a couple years look back on income during which time we actually showed the LLC's to be losing money. Do I need to try and work that into the statement of affairs somehow? Help?! Thanks!