Planning my BK

[Rick9972]

Will be filing within two weeks. Just visited the attorney's office for second time and thou I do not know how, he says we are under the median income and can file a 7. (I did the test several times myself and we were over the median income, but passed the means test?)

I have the following comments/questions.

1. We are current with everyone and have not missed any payments yet. (Lost 25% of income over last 8 months and still dropping, along with unexpected medical bills piling up. Emergancy fund shot and could see handwriting on the wall, decided to file before lates started showing up.)

2. Most of our debts are secured or student loans. We are keeping our primary home and everything else goes.

3. Was curious about how certian Credit card companies react to BK. We have a couple of small ones we would like/need to keep. (Small being balance under 1k.)

I have searched and can seem to only find a couple of them listed:

GEMB - Instant close (Suits us just fine)
Capital One - No info (Account is 12 years old and would like to keep *shrugs*)
HSBC - No info
Chase - I hear they like to make dangle earrings out of the card halves. (Suits me)
Citi - No info

Thanks for your time and effort.

[doingpoorly]

3. Was curious about how certian Credit card companies react to BK. We have a couple of small ones we would like/need to keep. (Small being balance under 1k.)

From what I understand, since you must list all of your debts in bk, you will not come out on the other side with an account still open. Even if you make arrangements to pay them in full, they will close your account. Also, if you have a zero balance on an account once the credit bureau lists you as having a bk they will close down your account as well.
Honestly, I think it is a good thing. CC companies are evil and keeping them in your life is like holding the pin on a grenade...one mis-step and you stumble and fall and you accidentally pull the pin. Boom! If you have an open credit card and you fall on hard times because of income loss, medical emergency etc you will go to the cc and use it, telling yourself that it will be for just this time or just to get you through a rough patch. Problem is we tell ourselves whatever we want to hear to justify using the stupid cards. With your income still dropping the worst thing you can have after a bk is a cc. It will be to easy to slip into cc hell . You will talk yourself into using them again and will find yourself back in the same position, but this time you wont' have bk as an option. Not for years at least.
Personally, I didn't have cc debt until 1 yr ago when income started to decline. I used to use cc and immediately pay them off. I used them for convenience and for benefits of points or cash back or whatever. Then I would leave a small balance for 2 months then pay it off. Eventually, it became thousands of dollars and making minimum payments. I fell for their trap. They got me, hook, line and sinker. I won't make that mistake again.
Life will be better without the stupid cards.
BTW- I don't think anyone "needs" a cc. Just about everything can be done with a debit card. It may take work to figure out how to book rental cars or other things, but like everything else in life....there is a way.

[JoeBankrupt33]

You can only omit a card from your bankruptcy if you have 0 balance. But, you are also required to list any cumulative payments of $600 or more to any unsecured creditor within 90 days on your statement of financial affairs. These are preferrential payments that the trustee can go after. Don't do it! Even if you do pay $600 to one creditor, then wait 90 days, it is still a risk that you won't keep the card.

I also filed 8 years ago. I got a Capital One the month before I filed and never charged any money on it. It survived the bankruptcy. But...8 years ago. It would be more satisfying to hear about this from a more recent debtor. This time, they're all going, no question, and I don't want 'em back.

Now, as for your median income calcs, there is a possiblity that your lawyer is wrong (and a chance you are). But, if you are paid bi-weekly and you have a payday this Friday (5/15), then you will only have 12 paychecks in the last 6 month lookback, which will help people come in under median and it looks like a nearly 8% paycut when you do the test. This is huge, but in 2005, bankruptcy became a game, and we're all here to play.

[eddiep]

I agree with doingpoorly and you need to learn to live without ccs, that is the price you will pay for filing bk, cant have your cake and eat it too. There will be offers for new cards in the future but at a very high interest rate that will only drive you underwater faster than before.

[Brighterdays]

yep, unfortunatley you can't pick or chose what cards to bk on. Its a all or nothing game, including what payments you keep making(you can't show preferential treatent by paying only a certain lender). once you file bk, it will trigger a "bolo" type alert to all your cards and they will all know and close your account. I have heard stories about hd or lowes cards that made it through bk. but those were rare instances.