using Corporate Credit card after filing ch7

[luckynucky]

What is the name of your state?tx
Can someone use her Corporate credit card after filing ch7? That card was not listed on the bk papers. If used will it have any affect on the case?

[olgethorpe]

If the person has no interest in the corporation, there is no problem. Even if the person is part or sole owner of the corporation then if the credit card is strickly in the name of the corporation, and its a C Corp or LLC, and you've filed personal bankruptcy there should be no problem. If its a sole prop or if you've personally guaranteed the card, then there may be an issue.

Ask an attorney...

[JETX]

I agree. The relevant issues would be:
1) Was the bankruptcy personal or corporate??
2) What, if any, is the relationship between the bankruptcy and the corporate card?
3) Why was "That card was not listed on the bk papers" and should it have been?
4) What is the EXACT concern you have about using this card??

[luckynucky]

Thanks for your responses. This card is through the company for travelling and food expenses. Bk filing is personal and the reason card was not listed was because it did not have any balances on it. The CONCERN I have is that this card is also from one of the CC companies that is listed on bk papers for a personal card account.

[JETX]

Okay, lets try this a different way.... if you have personal liability for this corporate-issued card, it should have been included in your creditor matrix, balance owed or not.

However, as long as the account is kept current, I doubt that there will be any repercussions from your using the card.

[luckynucky]

I did not include couple other cards on bk papers too becasuse they had 0 balances on them. My attorney had asked me that I didn't need to include those. Did I do it right?

[olgethorpe]

If you didn't owe them anything, there was no reason to include them. You might check your credit reports to see if they were closed by the CC company. If they weren't, you can use them. But remember, any new charges you would make on those cards you would now have to pay...you won't be able to discharge those.

[rainmand]

You have a wise attorney. Mortgage Lender's want to see that debtor's have re-established credit and have learned to use it responsibly after a discharge. Most debtor's have to resort to obtaining secured credit cards, converting them to non-secured cards after making regular payments for a period of time. Also, Lender's want to see that the debtor has held the cards for a period of time, usually 24 months, and have made regular payments without any lates. You're ahead of the game already just by keeping the cards out of the bankruptcy. After the bankruptcy has been discharged, charge a small balance on the cards and pay the minimum payment regularly and on time and it'll be a major advantage to you when it's time to apply for a home loan.

[luckynucky]

thanks much. Got another question about reestablishing credit. My attorney asked me to reaffirm the car loan because it would help me to reestablish my credit. I am little hesitant to do that because what if down the road I am not able to make the payments? If I reaffirm will I not be held responsible for the loan? What are your thoughst on this issue? What is in the best interest of the debtor?

[olgethorpe]

Yes, if you reaffirm, you will be held liable for the debt. If you find yourself unable to pay, and they reposess, you'll be required to pay the difference between what they sell it for and what you owe. Not good.

On the other, you should be able to continue making payments according to your monthly schedule. Usually, the banks/finance companies don't do anything as long as you're current. If you do find yourself unable to continue, call them and tell them to come get it and, since it was included in your BK, you're no longer liable.

The downside to this is I have heard of some folks having trouble getting the title to the car once its paid...not because of the BK, but because of the screwed up paper trail.

Also, (at least in our case), the bank continues to report to the CRA as "current, paid on time" so that it still has a positive affect on your CR.