Worth saving some accounts in BK?

[BKisSucky]

My husband suggested that we try and negotiate with creditors to pay off some of our small balances to get them in good standing again. My opinion is, if we file BK it will effect our credit negatively anyway, so why bother paying anything off? Why not just do a clean sweep?

Any ideas on this?

Thanks!

B

[SinkingFast]

That's not such a bad idea, actually. Trying to carry at least one unsecured CC thru BK with you.

I know with store cards, I'll be lucky if the 2 I have don't cancel me once they learn of the BK.

I already know one store cancelled a friend of ours because of his auto insurance carrier. He had several speeding tickets and an accident. When he bought a new car, called to add the new car, the insurance carrier came back a week later with a letter of cancellation of all of their policies due to his poor driving record. Adding the new car caused the insurance company to pull credit and driving records.

Then friend was shopping at the store and decided to use his line of credit to pay rather than writing a check. Charge denied. Friend wrote a check for his purchase and went to Customer Service about his store line of credit. Wanted to see what the problem was. The store had cancelled his line of credit due to recent negative comments in his Credit History.

If you can manage to get a major CC with a small line of credit thru BK without loosing your charging priviledges, I can see that would be helpful on the other side.

Be sure and run that by your attny tho. I've read where some people were asked at their 341 by the Judge if they had disposed of/cut up all their CC's. So check to see if that's OK in advance to be on the safe side.

[SinkingFast]

Well,........... We just discussed that in our Consult on Thursday. Foreclosure that is.

Our house is literally on the brink. We got notice from the Lender yesterday that they will move forward if they don't hear from us immediately. And they want money.

I thought if we let the house go in BK, that it would help our Credit. That we'd have the BK but no Foreclosure. It won't. We'll still have the double whammy on our Credit Reports.

The attny said the Lender will still have to Foreclose to get the Deed transferred into their name to sell the property. Even if we play nice and give the Lender a DIL to save them the costs of Foreclosure, the DIL will show. A Short Sale will show as well.

So, it's pretty much you pick your poison.

[aa06a47]

Today when I signed the paper work, my attorney asked if I used my cards within the last 90 days, I said yes, but not for any major expenses. I told her my charges for March (1 credit card) will be paid off...like 240 bucks, she said, let it go in the payment plan. I figured she would be pissed. I guess because it was such a small amount, she wasn't.

[HopeinHorizon]

I have a store card that looks like it made it through the bankruptcy...

It still shows open on my credit report (it had no charges when I went into bankruptcy)... I am considering calling the store and asking for a card as I have lost mine... I really don't have it, so that isn't a lie to see if they send a new one...

It would be great, because that would be a tradeline dating back to 1999, probably would do wonders for my credit score!