12 myths about bankruptcy....from General Bankruptcy forum

[BKIN2010]

"12 myths about bankruptcy

Sometimes, a fresh start makes sense -- if you can get past what you think you know. Here's how bankruptcy affects your credit, your possessions and your karma.

By Bankrate.com



With a mind toward declawing the monster, here are a dozen misconceptions about bankruptcy:

However, if you're planning to buy a house or a car, you might want to do that before you file. Those loans will be tough to get, and the higher interest rate on such a large purchase would make a significant impact on your payments. Also, if you have a credit card with a zero balance on the day you file for bankruptcy, you don't have to list it as a creditor since you don't owe any money on it. That means you might be able to keep that card even after the bankruptcy."

[BnkrptcyLwyr]

"Also, if you have a credit card with a zero balance on the day you file for bankruptcy, you don't have to list it as a creditor since you don't owe any money on it. That means you might be able to keep that card even after the bankruptcy."

Unlikely. Credit card holders will find out about your bankruptcy, even if you didn't owe on the date of filing. Typically, the card will be shut down.

And why worry ... you'll be flooded with new credit card applications upon the receipt of your discharge.

[discouraged]

Of course, the interest rate would be sky high, lol. Much, much better to just save for whatever you would put on a credit card and pay yourself the interest if you feel it has to be paid to someone.

[angles]

We received so many CC applications after we filed with most of them from Citi or Orchard. All of pre BK CC's canceled even though we had a zero balance on them.

Out of curiosity, I applied for an orchard card and was approved. But they wanted 60.00 a year and our limit was something like 300.00. I called and told them I was going to cancel based on the yearly fee (they did not disclose the fee before I applied) so they dropped it to 30.00 this year and stated they would wave it next year provided I made my payments on time. They charge an interest of 29%, which is huge but no big deal since we would pay it off every month anyway.

[BKIN2010]

Thanks for all the input. All my cards were clossed (by me) way before filling. Just thought the infor was interesting. It is encouraging to know that I can get a CC after filling/discharge.