Zero Balance Credit Card Before Filing?

[kar]

Ok this may seem to be an insane question but I am going to ask it anyways. Part of my job (I am self employed) involves travel which I need to rent a car from time to time. In order to rent a car most rental companies require a credit card. If we got one new card and locked it away so we don't use it and keep it at a zero balance, does that have to be noted in the documentation if we owe nothing on that card at the time of filing?

[Princesskina]

No, U owe NOTHING now if u know during the BK procedure ur going to need a credit card for expenses involving ur bizness the best bet is not listed cause all creditors listed will be notified and some may shut ur account down on there own because of the BK status.

But keep in mind if u use it and list it the trustee will look at that as some type of fraud.

[lrprn]

Ok this may seem to be an insane question but I am going to ask it anyways. Part of my job (I am self employed) involves travel which I need to rent a car from time to time. In order to rent a car most rental companies require a credit card. If we got one new card and locked it away so we don't use it and keep it at a zero balance, does that have to be noted in the documentation if we owe nothing on that card at the time of filing?

It very likely won't do you any good in the long run, Kar. The credit card companies share bk filer information with each other. Even if you don't list the card, when the company finds out, they will cancel you anyway.

A better idea would be to get a debit card from a bank or credit union before your file and use that when you travel. Is that a possibility? Debit cards survive bk because there's no risk to the cc company or the bank/credit union.

[kar]

It very likely won't do you any good in the long run, Kar. The credit card companies share bk filer information with each other. Even if you don't list the card, when the company finds out, they will cancel you anyway.

A better idea would be to get a debit card from a bank or credit union before your file and use that when you travel. Is that a possibility? Debit cards survive bk because there's no risk to the cc company or the bank/credit union.

It is that is most car rental companies don't except debit cards most of the times.

[lrprn]

It is that is most car rental companies don't except debit cards most of the times.

Most (not all) car rental agencies will take a debit card for payment if it has a MasterCard or Visa logo on it. The problem is that some rental agencies won't allow you to use a debit card to pay the deposit, effectively making it impossible to rent the car from them. Just check carefully ahead of time to ensure that the rental agency you intend to use will take a debit card for the deposit and the rental payment.

Sure hope things work out for you, kar. Folks like us that travel do have some unique problems during bk - today's business world does not accommodate cash and carry very well at all.

[SinkingFast]

Also, you can apply in advance with some rental car agencies to get a "Cash" ID card from them. The Cash card allows you to pay for your car rental with cash. Enterprise has a Cash Card program and I believe Avis does too. Maybe others as well.

Generally, Cash Cards have a short term use period so you'd have to renew one at least a couple times a year.

Just a thought for you.

[philslyn]

Well When i file electronically for the client, i dont really put the zero balance credit, they dont seem to have a problem with it. but u still need to declare it.

[philslyn]

I think i got lost with your question! I think i did.

[BK2008]

I've had zero balance cc's get shut off by the creditor, and that was with no usage for months and months.

I also have a major cc that was notified of BK (still with a zero balance), that survived it. I've still got it. The only communication I've had with the bank on the account was for some charges they wanted verified that I had actually made them and not be fraud.

And i *know* they've pulled my credit report since my discharge, and still it survives. And I use it in small amounts.

So you never know what will stay alive or not after the BK.

[ansky0007]

You can also get a secured credit card... Many companies will let you send them lets say $1000 and give you a credit card with a $1000 credit line. While they hold the money it basically makes interest as if it was sitting in a CD. This is what I plan to do immediately once I file and get discharged. We still have not filed yet so we have a few months to go.

[holding on]

You don't have to report that credit card in your bk because with a 0 balance they are not a creditor. BUT...as was said above, that credit card co. can easily find out you filed and can cancel you.

[Cali]

All the cards I had before filing, that were zero balance, weren't listed and are still open.

[paintinrosesred]

You can get a paypal cc and just deposit money into your account and use it like any other credit card also.

[PoorGrammyinBK7]

All the cards I had before filing, that were zero balance, weren't listed and are still open.

Discharged just a few days ago - not yet closed, but so far, at least 2 of my zero balance cards are still open - have not tried to use them yet, but they are showing as open when I go online. These are both Visas, so I am really hoping they will survive. Thinking of charging something small, like gas. I want to rent a car in a couple of weeks for a trip, so hopefully I will be able to do that with one of them.

[Bandit]

All the cards I had before filing, that were zero balance, weren't listed and are still open.

Have you tried using them yet?
That is how it was for my mom. They remained open for a few months after her BK closed. Right after she used the cards, they closed the cards. I am just saying so don't be too disappointed if they close, is all.

Discharged just a few days ago - not yet closed, but so far, at least 2 of my zero balance cards are still open - have not tried to use them yet, but they are showing as open when I go online. These are both Visas, so I am really hoping they will survive. Thinking of charging something small, like gas. I want to rent a car in a couple of weeks for a trip, so hopefully I will be able to do that with one of them.

If it were me I would not use it until I rent the car just in case they don't know about it yet or plan to close them when they see. I wonder because they don't actually charge anything until after returning the car. It would be interesting to see how that plays out...or just use the card to get approved for the rental & pay with the debit later?

The only way to know for sure will be trying to use it and then see what happens the next time you go to use it.