Including all debts in BK/Banking questions

[mycreditisbad]

Do you have to list all debts when you file for BK? I have a line of credit (Kwik Cash) through my credit union that is under $500. My intent is to pay that off within the next few weeks. We want to continue banking at this C.U. and do not have any other loans from them.

If we were to pay it before we file on Monday, will it look sneaky? we have not been paying any of our other CC debts so I am afraid it will look like a preferred payment.

At this point, I do not think that we would be able to open another account at a different CU due to the fact that we have not been making payments on our CC for 2 months and our credit scores are already low.

[tunskit]

The preferrential payment is for amounts over $600, but since this is iffy, I'd be concerned that it might be viewed as wrong by your trustee. If it were me, I'd include the debt on my BK and just reaffirm that one if you are sure you can't find another bank.

If you're willing to switch, you could do as we did. We had to close our CU account also. We opened an Online Payment account with HSBC. It still allows direct deposit, and you have a debit card, but no checks. You can schedule checks to be paid through their service and mailed to your accounts. We prefer not to have checks, so this is working for us. The drawback is there is no HSBC branch in our city, so we have to use the online banking or debit card for everything.

We do have a savings account with another credit union, and they let us open that even knowing we had bad credit and had filed on the other credit union. We are already in ChexSystems for closing our CU account and defaulting on the personal loan. They were fine with us having savings with them, but there is no debit card, so it's inconvenient, to say the least. That is why we searched for other options. There are many "second chance" checking accounts out there, but all charge a monthly fee; HSBC is free.

Good luck!

[TEW]

You can pay it off but they will most likely close if out if it’s a line of credit. You can not create anymore debt while you are in BK. You can pay what ever debt you want. I am doing a ride through on my car the payment is 483 a month. Most people here would tell you that you are wasting your money paying something that is going to be discharged anyway. Do you have any other loans with the CU ?

[mycreditisbad]

No, we do not have any other loans with them. Just the Kwik Cash.

[AngelinaCatHub]

No, we do not have any other loans with them. Just the Kwik Cash.

Your CU will freeze your account. We have our car, and over draft note of and checking account. As soon as they were notified, the locked us down including online ability and outstanding checks were dishonored. I called them and it is their rules and I've been a member for more than 40 years. Upon my word, they cleared the checks cancelled any nsf charges and sent me the papers to reaffirm. It really was not a big deal as long as you talk to them. They are out of state and the paperwork had to be recorded in both states. They were very nice about this. 'Hub