Cancelation of credit card accounts

[kar]

We recently filed for Ch. 7 BK through our attorney, and our 341 meeting will be in mid September. We received a letter from one our credit card accounts (unsecured), that they received notice of our BK filing. In their short letter to us, they mentioned that they canceled our account (no surprise there!), but also mentioned that the cancelation of our account may result in a negative reporting to the consumer credit reporting agencies. If this creditor is included in the BK filing, and because we didn't cancel the account prior to BK, and we were in good standing (always current and never late with any of our payments) up until the time of filing, how will that be reflected after our discharge? Will this be a negative that impacts the credit report even after discharge?

[lrprn]

We recently filed for Ch. 7 BK through our attorney, and our 341 meeting will be in mid September. We received a letter from one our credit card accounts (unsecured), that they received notice of our BK filing. In their short letter to us, they mentioned that they canceled our account (no surprise there!), but also mentioned that the cancelation of our account may result in a negative reporting to the consumer credit reporting agencies. If this creditor is included in the BK filing, and because we didn't cancel the account prior to BK, and we were in good standing (always current and never late with any of our payments) up until the time of filing, how will that be reflected after our discharge? Will this be a negative that impacts the credit report even after discharge?

Credit card debt listed on bk creditor lists that was in good standing on the date of filing has to be listed as IIB or 'discharged in bk' on credit reports. They can try to report something different, but you can challenge it and get the rating changed. Try not to stress over this - it's an empty threat.

[spongenotbob]

We recently filed for Ch. 7 BK through our attorney, and our 341 meeting will be in mid September. We received a letter from one our credit card accounts (unsecured), that they received notice of our BK filing. In their short letter to us, they mentioned that they canceled our account (no surprise there!), but also mentioned that the cancelation of our account may result in a negative reporting to the consumer credit reporting agencies. If this creditor is included in the BK filing, and because we didn't cancel the account prior to BK, and we were in good standing (always current and never late with any of our payments) up until the time of filing, how will that be reflected after our discharge? Will this be a negative that impacts the credit report even after discharge?

Was there any balance on the card at the time you filed?

Assuming no, it's should just say "Closed at Credit Grantor's Request" (but still Pays as Agreed / Never Late). Yes, technically, it is a minor negative on your credit report. But in the grand scheme of things, it's really trivial and transient - forget about it.

If there was a balance on the card, then yes, it could get trickier since you are required to list all of your debts at the time of filing. But it just means it would need to be included in your schedules.

Good luck!

[aa06a47]

We recently filed for Ch. 7 BK through our attorney, and our 341 meeting will be in mid September. We received a letter from one our credit card accounts (unsecured), that they received notice of our BK filing. In their short letter to us, they mentioned that they canceled our account (no surprise there!), but also mentioned that the cancelation of our account may result in a negative reporting to the consumer credit reporting agencies. If this creditor is included in the BK filing, and because we didn't cancel the account prior to BK, and we were in good standing (always current and never late with any of our payments) up until the time of filing, how will that be reflected after our discharge? Will this be a negative that impacts the credit report even after discharge?

Get a copy of your credit report a month or so after the case is closed and then start disputing the ones that are reporting inaccuratly. Right now, if your credit report was like mine right after filing, it is in a state of tremendous turmoil. I had a credit monitoring service when I filed and it drove me crazy. It took about 4 months for things to settle down and the creditors reporting accurate. I don't know how many times I filed online disputes only to find it corrected prior to them even getting the dispute. That is why I recommend waiting a short period of time (3-6 months)after filing to start getting into the credit report hot and heavy.