Using new cards just before filing.

[BBW]

I certainly have learned it and never again will I accrue debt just because I have a 0% balance transfer rate or a 6% purchase rate. Over night I know those can go thru the roof.

Thanks for your input.

[justplaintired]

I don't think charging and paying those cc off will matter much, they will most likely close you anyway. We had some large credit limit cc that had $0 balances, all were closed even before we filed due to lates on other cc. So I wouldn't plan on cc riding thru, it most likely won't happen.

Worry about reestablishing credit once the BK is over.

[BBW]

your probably right I'm just trying to get the jump on it. I waited so long to decide to do this now that I am commited I am scrambling to get everything and then some done asap.

[aljohnson007]

[jribe]

you have to list ALL debts (credit accounts) regardless of balance and intention.

These will likely not survive the BK; you can always get a couple of secured cards after you file if your intent is to rebuild credit.

First I want to say I'm sorry for posting so many questions in such a short period of time. But as I learn more I will do my part to give back my answering others questions.

I've recently applied for some new cards (walmart, bestbuy,macys) who have issuers that I will not be discharging. My hope is the more zero balance cards I have the more likely I will be able to keep some of them. So I've just got these cards and I really should use them so they don't cancel the accounts which is what they will do if I don't try to use them for a few months. Macys did this to me a few months ago.

So is it alright to charge say $10 ea, pay it and not list them when filing since they would be paid off and the preference payment is only $10??? Is that legal? Would trustee find out or care? I'm just trying to have as many tools as possible for when I rebuild my credit.

[mike258]

you have to list ALL debts (credit accounts) regardless of balance and intention.

I don't believe this is the case. If an account has a zero balance you don't have to list it. Look at Schedule F, it specifically says to list all entities holding unsecured claims...

If an account has no balance, there is no claim.

[backtoschool]

You don't have to list cards that have 0 balances, but you cannot use them until you are discharged, since all payments to all cards are the decision of the trustee once you file.

The vast majority of cards will not survive bankruptcy, even if they have zero balances. Certainly major credit cards, even if they survive discharge, will probably be closed once the first account review is done, and a bankruptcy shows up. Credit card companies do soft pulls on credit reports every month, or every quarter, and if a bankruptcy comes up in that soft pull, usually the account is closed.

Small store cards sometimes survive based on what users have posted, but this is the rare exception not the rule.

[justbroke]

I don't believe this is the case. If an account has a zero balance you don't have to list it. Look at Schedule F, it specifically says to list all entities holding unsecured claims...

I will add on to this. You do not need to list an account with a zero balance, but you should make sure that account is "current" and there is no negative reporting on your credit report.

So, if you ever paid 30, 60, 90 days late in the last 7 years on that card, even with a $0 balance, I'd still include it on the schedules. This is primarily to remove any negative status the account has on your credit report.

[backtoschool]

I will add on to this. You do not need to list an account with a zero balance, but you should make sure that account is "current" and there is no negative reporting on your credit report.

So, if you ever paid 30, 60, 90 days late in the last 7 years on that card, even with a $0 balance, I'd still include it on the schedules. This is primarily to remove any negative status the account has on your credit report.

This is a great suggestion. I thought though that any negatives on your report before you file for bankruptcy, remain on your report for 7 years.

[justbroke]

This is a great suggestion. I thought though that any negatives on your report before you file for bankruptcy, remain on your report for 7 years.

Yes, but an IIB account status is much better than a Pays 30-Days Late. When I filed for bankruptcy, my credit score went up over 50 points, due to the IIB status placed on accounts.

Plus, it is possible (in limited cases), that if you dispute an IIB item, the creditor will remove it. I have found that they will certainly remove any negative information and just leave IIB on the account with a $0 balance. Better for your score, if you're into scores.

[backtoschool]

Yes, but an IIB account status is much better than a Pays 30-Days Late. When I filed for bankruptcy, my credit score went up over 50 points, due to the IIB status placed on accounts.

Plus, it is possible (in limited cases), that if you dispute an IIB item, the creditor will remove it. I have found that they will certainly remove any negative information and just leave IIB on the account with a $0 balance. Better for your score, if you're into scores.

This is great news. I am decidedly NOT into scores, but now that I am back in the Midwest, I will want to buy a house in a couple of years and I would love to have those pre-bankruptcy lates cleaned up at some point.

I love this board, I learn something new every day, and often I learn it from you justbroke.

[ForumReader]

What does an IIB stand for, please?

[backtoschool]

What does an IIB stand for, please?

"Included In Bankruptcy"

[BBW]

Credit card companies do soft pulls on credit reports every month, or every quarter, and if a bankruptcy comes up in that soft pull, usually the account is closed.

Small store cards sometimes survive based on what users have posted, but this is the rare exception not the rule.

Exactly, my thought. Small cards that issue their own cards (macys, bloomingdales), small banks, may survive. I'll keep my fingers crossed.

[ForumReader]

"Included In Bankruptcy"

Thanks!