Credit Cards

[dive2xs]

Did some searching but could not find a straightforward answer. Pro Se Ch 7. About $11k in debt. Mostly Charge-Offs on 2 out of 4 credit cards.

1. Do I list all my credit cards?

2. I have one with a $400 limit and $270 charges on it. Is this too small of debt to discharge?

3. Can I keep one of the cards? If so, How? Is it worth it? I have great payment histroy with Discover, and I am current, but it is charged to the limit. ($1750). Is there a benefit to keeping it? Wanted to keep a credit card for car rentals etc... Is it better to just get a secured card after the BK?

[HHM]

1. Yes, you list everyone you owe money to.

2. No, it can be discharged, but if you pay it off before filing so that it has a zero balance, you do not need to list it on your BK

3. See answer to number 2. If you owe significant money, more than a few hundred dollars, you need to list it. Again, if a card has a zero balance at time of filing, it doesn't have to be listed. The other caveat is that you should not make payments to any single credit card in an amount over $600, so paying off discover in order to keep it is probably not an option.

[accentone]

confirming--if I have a credit card (it's a Sears Mastercard) with a zero balance when I file--I don't have to list it? Does that mean it is useable when bk is over? Not looking to get deep in debt again, but they sure come in handy when you want to rent a room or a car.

[HHM]

confirming--if I have a credit card (it's a Sears Mastercard) with a zero balance when I file--I don't have to list it? Does that mean it is useable when bk is over? Not looking to get deep in debt again, but they sure come in handy when you want to rent a room or a car.

YES, and MAYBE

YES, if the card has a zero balance at time of filing, you need not list it on your BK petition

As to the usability of the zero balance card after BK, First, your not supposed to use credit during the pendency of your BK. Second, just because you don't list a card, doesn't mean the credit card issuer won't find out about your BK, (credit card companies audit accounts). However, my experience has been that if the credit card company doesn't lose any money on you because of your BK, they will keep the account open. But they are not legally required to keep the account open and you can't force them too either.