Credit Card Use After Filing-Before Discharge

[woeisme]

Pretty much all the "big" company cards get canceled, Visa, MC's, Discover, AMEX, etc. They check the credit bureau's regularly, see the BK on there, and close your account whether you had a balance with them or not. The ones that survive, if any, are the small local cards that aren't backed by the big companies, like a local clothing store, etc. I don't think spending the $1000 on the card will affect your active BK, that should still go through, but you will have to repay it, can't include it in the CH 7. I wish you the best of luck, sounds like you still have a tough road ahead of you.

[meow44]

simulation rachat de credit

sounds interesting. thanks for sharing..

[CH33 Paralegal]

True, while you're case is active, you're not supposed to incur any new debt of any kind. In the court's eye it defeats the purpose of getting out of debt in the first place via BK, especially when it's unsecured debt. Your attorney may not have been aware that you were going to extend credit while the case was active when he gave you that advice. I talk to clients about rebuilding their credit too. One of the things I suggest is getting a credit card, then paying every utility with it and then making a lump sum payment with all your utility money to the credit card. Consistent history of extend - payback - extend - payback...on a monthly basis.

ALSO, ALL POST PETITION DEBTS CANNOT BE DISCHARGED BY THIS CASE unless it was for necessary medical or something like that. something you just couldn't help. You're absolutely 100% on the hook to pay for that debt outside of the BK and it will transcend the discharge.

If you owed money on it at the time of filing, it needed to be included as a debt. Also Capital One is a for-profit entity. Although there is no law that prohibits you or prevents you from taking on new debt after the BK, Capital One has every right to do business or refuse to do business with anybody they choose based off their policies as long as they aren't discriminatory.

[leslie465]

CAR b4 discharge.....

I was told car loans were acceptable before discharge. Based on the fact you needed it to maintain employment. I just got a nice Passat with a 15% rate.....very surprised it went that smooth.

[nc73]

I've lived without credit for a while now and it' not bad. I can get use to never seeing another credit card bill. If I don't have the money in the bank I don't spend. Credit is evil!

[backtoschool]

this thread is two years old.

Most credit cards opened right before filing would be seen as fraudulently opened. The legal definition of insolvency in regards to bankruptcy is 90 days before filing. The credit card companies will most likely close all the cards right after you file.

[JackBondLove]

Yes, but those accounts that make it through a bankruptcy are few and far between. *Generally*, accounts don't make it through a bankruptcy.

But I was told by USAA that if I paid off the account before filing, that I would be able to retain using that account. Of course, it didn't seem look a good business decision to convert my exempt assets to pay off the debt, just so I would have access to that debt again (which I would need to pay off), when if I were to need the cash, I could just use the cash then, and not have to pay it off.