Keeping 'clear' cards?

[D0WNAND0UT]

I am approaching chapter 13 at warp speed. My question is can I stop paying credit cards and put all I can on one particular card to clear it off and use it through my bk period for gas etc. I am from the UK I might need the card for any family emergency over there as they won't accept cash for an international flight or car rental.

[AngelinaCat]

You asked this same question on the Ch7 Board, and received many answers, the consensus of which is "NO."

http://www.bkforum.com/showthread.php?t=46879

It is against forum rules to post the same question on different Boards. I am not a Ch13 guru, but I suspect the answer will be the same.

[D0WNAND0UT]

Keeping 'clear' cards?

You asked this same question on the Ch7 Board, and received many answers, the consensus of which is "NO."

http://www.bkforum.com/showthread.php?t=46879

It is against forum rules to post the same question on different Boards. I am not a Ch13 guru, but I suspect the answer will be the same.

I don't want to come across as disrespectful, but as you admit, you are not a chapter 13 guru, but there may be someone on the site who is, and maybe able to help to me. I honestly thought that the rules for chapter 7 and 13 may be different. We're all on a learning curve here.

[oldhack]

You MUST report ALL debt on your Chapter 13 filing. Even if you have no balance on a particular card -- and, thus, don't HAVE to list it -- you'll be limited by your trustee in acquiring new credit before discharge, subject to dismissal if you violate that limit without permission.
And, it's very likely the card issuer, upon learning you've filed bankruptcy, will close the account anyway.

[AngelinaCat]

I don't want to come across as disrespectful, but as you admit, you are not a chapter 13 guru, but there may be someone on the site who is, and maybe able to help to me. I honestly thought that the rules for chapter 7 and 13 may be different. We're all on a learning curve here.

You have your answer. None of us posting here are authorities in anything. That disclaimer is up front. This is not a place for free legal advice.

This is a forum made up of anonymous posters, unknown to each other. The opinions, recommendations, and advice given reflect what each of us--our membership--have experienced in our own lives, or we MAY have actively researched on YOUR behalf.

I submit that you already know the answer to the question and are attempting to 'game' the system by posting the same question in two different places.

I know people like you: ask a question one way--when you don't like the answer given--you rephrase it and ask the same thing again.

You need to go see an attorney. Get your free consultation, or two or three. Good luck.

[lrprn]

I honestly thought that the rules for chapter 7 and 13 may be different.

They aren't. You have to list *ALL* your debts when you file no matter which chapter. Using one credit card to pile all your cc debts onto right before filing opens you up for a possible creditor objection if the creditor can prove you did it without any intent of ever paying the debts. You are taking a particular risk if the amounts you transfer are large and/or the transfer is done within 90 days of filing.

You can leave off any cards that have a zero balance on filing day, but don't expect any major credit cards to be arround after filing for long. Rarely a few local or business-focused smaller cards (think Kohl's or Penneys) survive, but don't count on it.

All the cc's share information about filers between them. Once they find out you filed, they will cancel the card - even one with a zero balance on it.

You have to find a way to live without credit cards. There's just no other way to get a real fresh financial start and prevent yourself from ever being here again (at least for reasons you can control).

In the future, if you aren't sure about differences between chapters, it's best to post your question in the General Bankruptcy area. That way you'll get responses from both sides of the fence. (You also won't violate the forum rules about posting duplicate threads asking the same questions as a bonus )

[Flamingo]

I am approaching chapter 13 at warp speed. My question is can I stop paying credit cards and put all I can on one particular card to clear it off and use it through my bk period for gas etc. I am from the UK I might need the card for any family emergency over there as they won't accept cash for an international flight or car rental.

Your attorney will ask for a complete listing of your credit accounts and balances. You will have to provide the name of that creditor and indicate there is a zero balance on that card. Your attorney will probably advise you that the card is yours to use as you wish but there is a 99% chance the card will be closed by the creditor upon the creditor learning of your filing. It may be immediately, it may be months even years. Some cards do make it through without being closed but the majority get closed. There is no guarantee. Discuss thoroughly with your Chapter 13 lawyer.

[woeisme]

My trustee said that I need permission to incur ANY new debt after I filed, with the exception of emergency medical debt. So even if I had a card that survived (I didn't, those with $0 balances closed once the BK hit my credit reports) I would still need trustee permission for new debt. What you need to do during your BK is build up an emergency reserve of $ that you can put on a pre-paid credit card or that you can have in a bank account with a Visa/Mastercard debit card. The airlines and car rental places will take those kinds of cards. It's scary being without that crutch of credit for emergencies, but remember that available credit is actually pretty recent, people survived forever without having credit cards to rely on, it's just since the 70's-80's that we started feeling like we "had" to have credit to do daily transactions. You just need to plan more and have $ saved for the rainy day, not rely on someone (credit issuer) to have that $ available for you to pay back in installments. Good luck!

[D0WNAND0UT]

Keeping clear cards?

Thank you...Irpm, Flamingo and woeisme for your helpful and non judgemental advice. I really appreciate it.