When to reaffirm debt in chapt 7?

[Ledrak]

What is the name of your state? SC

I filed chapt 7 about 2 weeks ago. I have one cc that is in good standing with very little charged on it that I would like to keep. Do I need to discuss reaffirming this debt with the cc company before or after my meeting with the trustee?

 

[Gregeney]

Has the creditor offered a reaff? Usually they just close the account. It might not be viewed as in your best interest to reaffirm an unsecured debt.

 

[daprez1963]

So when you file a BK7, do you lose that CC that is in good standing or is there a way that they will let you keep it? I have one CC and I use it for small stuff that require a CC like reservations etc. It has a $500 credit limit and is unsecured. If and when I declare a BK, is it automatic that it be closed or do they allow you to keep it? What about car loans?

 

[Gregeney]

If by "in good standing" you mean there is a zero balance, then the CC creditor is not even listed, because they are not a creditor at all. In that situation, you could likely keep the account open.

If you are worried about not being able to obtain a new credit card after discharge, don't. Offers will likely come out of the woodwork. Just be very careful about the terms. (interest rate)

 

[moburkes]

If by "in good standing" you mean there is a zero balance, then the CC creditor is not even listed, because they are not a creditor at all. In that situation, you could likely keep the account open.

If you are worried about not being able to obtain a new credit card after discharge, don't. Offers will likely come out of the woodwork. Just be very careful about the terms. (interest rate)

But, creditors also have a tendency to cancel the card whenever they next pull your credit report and see the BK. Some don't, but many do. And, they can raise your interest rate based on your credit.

Gregeney: OP stated that the card does have a small balance.

 

[Ladynred]

As already noted, there's really no point in trying to reaffirm as the creditor will most likely close the account anyway -- so even if you're allowed to reaffirm it, you'd just be paying on an account you can no longer use.

My sister did keep a couple of very small-balance cards in her BK, and the accounts stayed open. However, that was 10 years ago and things have changed greatly.

Just let it go -- you'll have ample chance to re-establish your credit.

 

[Gregeney]

Gregeney: OP stated that the card does have a small balance.

Yes, I was responding to the 3rd post.

 

[moburkes]

Yes, I was responding to the 3rd post.

My bad. Thanks.

 

[Ledrak]

No worries. I've decided it's better not to reaffirm anything at this point. Thanks guys