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AshleyO124

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Chapter 7 questions re: Credit Cards
I'm having to file chapter 7 this December due to a lawsuit I can't afford to fight any longer. We feel the judge could lower the settlement but I can't afford anything over $10,000 right now. I just called Capital One regarding my three cards with them. One is my business card that gets paid off along with a personal card I use everyday and pay off as well. My third has a high revolving balance my attorney said I should discharge and try and start clean. Capital one couldn't answer my question about me asking for the one to be discharged and me keeping the other two cards. The lady said I could actually lose all three cards by filing bk but to check with my attorney. He said he rarely sees it happen but with the economy on the rocky path its heading to, I'm afraid I'd lose the cards. Has this happened to anyone else? Also if I file Dec 1st, does that mean my FICO score takes the hit that day or when my bk is finished?

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I had to file bankruptcy due to a brain tumor that turned my life upside-down, and what I was told was that *ALL* my accounts had to be included, i.e., I could not pick and choose which to discharge in bankruptcy and which to keep open. I had numerous accounts that had never had a late payment, despite my having no income for four years at that point [I had been REALLY GOOD about socking away money!], but I had no choice but to have them included in bankruptcy. I'm in California. I don't know offhand whether state or federal law governs this, so take my experience for what it is, MY experience. Yours may vary.

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The typical Capital One rep is not going to have any idea on this. If it were me I would take the lawyer's advice as he/she deals with this all the time.

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RE: Chapter 7 questions re: Credit Cards

The previous poster is correct- the Capital One rep won't be able to answer this.  However, I wouldn't expect for all of the cards to stay open.  It rarely happens.  Only reason I'm saying this is because you are required by law to list all of your actual debts.  If you have a debt with a particular creditor, and other lines with the same creditor have a $0 balance, they're more than likely going to close all lines of credit to protect themselves.  Unfortunately you're not able to pick and choose which accounts are included in bankruptcy. 

I have a Victoria's Secret card that survived bankruptcy because: 1) it was $0 balance and was not required to be listed as a debt and 2) I had no other Comenity cards, so honestly the company wasn't aware that I filed.  In cases where a company does catch wind of a bankruptcy filing, you can bet they will close your card to prevent potential problems.  Fortunately, Capital One is bankruptcy friendly and you'll most likely be able to get back in with them even if they do close the cards.  I've heard that if you're "blacklisted" due to burning them in bankruptcy, that you can expect to get back in within 12 to 18 months at the latest.  There have been plenty of people to get back in immediately after discharge!

Regarding your FICO scores, they will take a hit as soon as the filing shows up on your reports.  I'm not what my actual FICO scores were at the time of filing, but my CK scores dropped down to the 480's... ouch.  It really depends on the state of your credit health before filing.  Expect to see the scores fluctuate before and maybe even soon after discharge as creditors are updating your accounts.  Pull your reports and make sure that they all end up reporting "$0 balance" and "Included in bankruptcy".  Please google "BK to 700"... it will bring you to a thread at popular credit forum with lots of good info on how to check on and clean up your reports after discharge if things aren't reporting correctly.  Good luck with everything!

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