Credit Card


D

Dr.Z

Should receive our Chap. 7 discharge in a few weeks and am concerned
about not having single credit card in a society that functions on
credit cards.

My question is.....how can I get 1 credit card and use it judiciously?
Can I borrow 2 or 3K dollars from a relative, deposit it in a savings
account in my bank and use it as collateral for the credit card and pay
the balance on my credit card each month? Once my credit is
re-established, in a couple years, my relative would get his money back,
plus the interest.

I absolutely do not want to do anything to jeopardize the Chap. 7.
 
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N

none

I wouldn't see it being a problem as long as there is a paper trail that
shows the relative gave you the money and it wasn't money you had
fraudulently transferred to that relative before filing.
 
P

PWB

Actually, once your BK7 has been discharged, you are obligated to report to
the trustee any inheritances or other receipt of *sizable* gifts of money
for only 180 days post-discharge. Anything after that, the BK court can't
touch.

Creditors don't "monitor" your financial transactions after discharge.

Regarding credit after bankruptcy -- you'll probably be inundated with
offers. A few of them are actually decent. Hold out for those. <g>


PWB
 
D

Dr.Z

Went to Wells Fargo Bank today, and had a check for $3000 from a
relative to deposit in a secured Visa account at no interest. Was, at
first, told that it would take 10 days to get the CC. I explained
everything about our Ch. 7 being discharged in a couple weeks, and
filled out all of the forms.

I did not feel comfortable with the account clerks knowledge and asked
her to call her legal dept. to be sure. I also told her that I signed an
agreement with my relative to return the money, after 2 years and I had
established good credit.

Her legal dept. responded that she could open the secured savings
account for $3K
 
D

Dr.Z

Sorry...pressed the Send button too soon

....but that I would have to wait 1 year before getting the Visa card.

Now, I didn't just fall off the turnip wagon, so I said thanks, but no
thanks, did a 180 and showed her my backside.

So...it appears that it will be life without a credit card. What I'm
concerned about is a family emergency that will require air & hotel
travel, and it appears that I may be faced with that situation quite
soon.

My discharge will be in a few weeks and it looks as though I'm going to
have to learn to swim again, but maybe that's as it should be.

Thanks for listening.
 
A

Active User

Hello,

It does often feel as if a credit card is a necessity. But, you might
want to think about a credit card as a more formal source of "social
capital." It sounds like you have a great deal of social capital if a
relative is willing to lend you $3000 dollars.

The advice about waiting 180 days seems like a good cautionary
measure. I would urge you to wait until your discharge is absolutely
complete before moving around large sums of money.

I am in a similar situation to you in some respects in that I am
rebuilding my credit- in my case nearly two years after bankruptcy.
Although, I feel very good about my situation. I don't mean to assume
too much here - but I would would imagine that you now have a lot more
cash flow after your chapter 7 discharge. Might it be possible to save
some of that money to use as security?

It's easier said than done for sure! I am working very hard on
following my own advice here. I recently received a promotion and a
significant income increase. After my minimum monthly bills and
routine living expenses are paid, I find myself with an extra $1,000 a
month in "disposable income." Why should I need a credit card? I
should just save that money in a savings account and borrow from
myself as needed.

My personal challenge is to save and be more judicious with my money.
I want soo many things -- new furniture, new car, new clothes and
that's the short list. :) That extra $1K a month seems to go by so
fast now. I still find myself tempted by credit cards - but I know
that it's not truly needed.

I would like to learn from your personal situation. If you feel
comfortable anonymously disclosing your monthly budget, expenses, etc.
... I would find that very helpful.

Good luck!
 
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D

Dr.Z

Thanks for your sensible response!

As for increased cash flow after Ch.7, that will not happen, since I'm
at retirement age and have lost my working income. Hence, the Ch. 7. My
retirement income
will barely cover expenses, but I will have a small residual. All of
this was included in my filing.

Again, Thank you.
 

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