Using new cards just before filing.

[mike258]

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.

Creditors are allowed to report you history right up to the bankruptcy. Some of my accounts show 30 days, 60 days 90 days late then IIB. Others have the entire pay history deleted and just show the bankruptcy.

Say you have a 5 year old 30 day late on an account that's not included in your bankruptcy, you might want to leave that account off your petition (remember we are talking about zero balance accounts). The 30 days late will fall off in 2 more years..if you IIB, it will be on there for another 7 years.

[Chowder]

For example citi issues my sears,exxon, and homedepot cards. So I know even with a 0 balance those will be gone.

Not necessarily. Many here have had major cards survive despite including another from the same creditor in their BK.

I'm a week or so from discharge (knock on wood) and still have a couple of Citi's and a Chase, along with a handful of other smaller dept store cards open/in good standing. They could be closed tomorrow, but who cares.

The LOC's, new car loans, and CC offers come in daily. Some of these credit cards have better rates than those I ditched in the BK.

As you can see, you'll have plenty of opportunity to rebuild/dig deep hole with credit pretty much immediately.

[2manybills]

The card we have is the one that the CU sent us from the account we opened befor filing.

So far so good. Our intent is to charge like $50 and then pay it immediately.

I agree Amy, it is a form of slavery with a great big noose around your neck.

[Amy26]

Just to chime in on the already great advice here... to quote Yoda: "You must unlearn what you have learned!"

Credit is so stupid and I really hate that the US has adopted this form of slavery. I lived in Europe for a time and there WAS NO CREDIT! And this may be why Europeans are thought to be much happier than us Westerners... They need a loan, they go to the bank and ask for it... if it fits in their budget...they get the loan... the interest is low just so the bank makes a buck but that's it!

Albeit in the US is hard to do anything without credit but if I never see another credit card ever it will be too soon. I have no problems with secured loans for mortgages or autos... as long as you don't allow it to become upside down.

I actually did have one credit card survive... which I don't even think appears on all my credit reports...but its a Fashion Bug card that I got like 10 years ago with a 100 dollar limit that I have no idea why its there or what the hell they are doing reporting it after all these years... hehe...

And the IIB certainly helped me a lot with mortgages... they had remained on my report until I was discharged and were sitting there at 90+ passed due... drove my score down to 530. Then 2 days after my discharge my mortgages were moved to IIB and zero'd out and it raised my score to 598. In 2 days! I was shocked... but I feel so wonderful pulling my credit and there is nothing on it!!!

Course... I still have like 100k in student loans.... luckily I called Sallie Mae the other day and asked if I was still in voluntary forebarance and since I'm still in school for my masters they have me deferred still. I'm not gonna call my private student loan lenders though... I'm just gonna prey that maybe they will forget about me ... lol.

[ForumReader]

"Included In Bankruptcy"

Thanks!

[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.

[backtoschool]

What does an IIB stand for, please?

"Included In Bankruptcy"

[ForumReader]

What does an IIB stand for, please?

[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.

[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]

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]

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]

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.

[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.

[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.