Listing Creditors in a Chapter 7 Case
Joliet Illinois Bankruptcy Lawyers & Attorneys
Jesse Barrientes: Well, a lot of questions I get in some of these interviews is that people come in and they have a lot of credit card debt. They just can’t shoulder it anymore. They may even be up to date on all these things but the burden is just so tremendous. And they just can’t do it anymore. And what they want to do is they want to do the bankruptcy and they quality for the bankruptcy. But they want to keep this one card that – you know, just for emergencies. Just in case.
Dave Siegel: Right. We refer to that as a security blanket. I want to get out of debt but I want to keep this one card. Well, why? Because they don’t think they’re going to get credit again. Well, the truth is –
Jesse Barrientes: Well, can you keep the card?
Dave Siegel: Typically not.
Jesse Barrientes: Why not?
Dave Siegel: Well you have to list all the people that you owe money to when you file bankruptcy.
Jesse Barrientes: Well, even Uncle Harry?
Dave Siegel: Oh, definitely Uncle Harry needs to be listed. His debt needs to be eliminated. But if you have a credit card with a balance, it must be listed. If you have a credit card that has a zero balance on it, you obviously wouldn’t have to list it because it’s not a debt, but you’re probably going to get a letter from that issuer terminating your charging privileges anyway. So don’t plan on keeping a credit card if you’re contemplating filing bankruptcy with a chapter 7 bankruptcy lawyer. That doesn’t mean you won’t get credit again. You can apply for a secured card immediately after a bankruptcy. Put $250 in a bank account. You’ll get a credit card with that much in charging privileges or more. And you’ll start to reestablish. And you need to go on a cash basis anyway because you had a budget problem, you had a credit problem, and you were probably using the credit cards when you shouldn’t have.
Jesse Barrientes: Well, a lot of people also get these pre-approval even after they – you know, while the ink is still hot on their filing of their bankruptcy. And the difference is what? The interest that’s charged, right? That’s a huge amount of interest.
Dave Siegel: That’s correct. There was just a story in the Chicago Tribune recently where a gentleman who has a family kept tract of all the credit card applications or solicitations that he and his family received over the course of a year. I think it was about 445 solicitations. So yeah, you will get offers for credit again. Because they can’t differentiate between the filers and the non filers. Between the children, between the pets. It’s ridiculous.
Jesse Barrientes: Oh, so even pets get the applications for credit cards?
Dave Siegel: Even pets.
Jesse Barrientes: Oh. Too bad you can’t get the tax deduction for that cat.
Dave Siegel: That’s right.
Back to Joliet Illinois Bankruptcy Lawyers & Attorneys
Chapter 7
What’s needed to file a Chapter 7 case?
Stay on creditors during a Chapter 7 case
Mistakes made in a Chapter 7 case
Listing creditors in a Chapter 7 case
Credit counseling classes in a Chapter 7 case
Notice to creditors in a Chapter 7 case
There is life after bankruptcy
Chapter 13
Saving your home with a Chapter 13
Stopping a sheriff sale using Chapter 13
Converting to a different chapter from Chapter 13
