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    Mesa Bankruptcy Law Office 
    My AZ Lawyers
    1731 W. Baseline Rd.
    Suite #101
    Mesa, AZ 85202
    (480) 263-1699

    Phoenix Bankruptcy Law Office
    668 North 44th Street, Suite #300
    Phoenix, AZ 85008
    (480) 833-8000

    Glendale Bankruptcy Law Office 
    My AZ Lawyers
    20325 N. 51st Ave.
    Suite #134
    Glendale, AZ 85308
    (623) 640-4945

    Tucson Bankruptcy Law Office 
    My AZ Lawyers
    2 East Congress St. Ste. 900 
    Tucson, AZ 85701 
    (520) 306-8729

  • Can a creditor send me to collections if I am making a good faith payment?

    A retail store contacted me regarding past due payments dating back four months since I lost my job. I have been making good faith payments like $10 every 2 weeks that’s all I can do right now…Can they do this?

    A: Yes, a creditor can send you to collections and make collection calls on your debt even if you are making good faith payments.

    The good faith payments to the creditor may show the creditor that you have the intention of paying off your debt but the good faith payments by no means indicate that you are current or shouldn’t be on their list of collection calls. You could talk to the creditor and see if this is an acceptable scheduled payment form and if they would stop harassing you with calls. However, they are within their rights. If you have this creditor and other creditors that you can’t keep up with, you may want to talk to an experienced bankruptcy or debt settlement attorney and find out what options are available to you to alleviate your debt.

    I hope that you found this answer helpful.

    Answered By:

    The My AZ Lawyers
    1731 W. Baseline Road, Suite 101
    Mesa, AZ 85202
    Office: (480) 263-1699

    1731 W. Baseline Rd., Suite #100
    Mesa, AZ 85202
    Office: (480) 833-8000

    20325 N. 51st Ave., Suite #134
    Glendale, AZ 85308
    Office: (623) 640-4945

    2 East Congress St., Suite 900
    Tucson, AZ 85701
    Office: (520) 306-8729

    Re-Published from AVVO Legal Questions and Answers.

    Credit Cards with a Zero Balance When Filing Bankruptcy

    Blog on behalf of the My AZ Lawyers, PLLC, posted July 9, 2012.

    What do you do with a credit card that has a “zero” balance when you are filing bankruptcy? Occasionally a debtor will report a credit card with no balance on the day the bankruptcy is filed. The Bankruptcy Code does not require a person filing for bankruptcy to report a zero balance credit card. If you don’t owe the credit card company on the date you file the bankruptcy case, it is not a creditor for purposes of filing bankruptcy.

    Any credit card that is not listed in your bankruptcy schedules, will not have notice sent to the card issuer by the bankruptcy court that you have filed bankruptcy. If you choose to not include a particular credit card, it could be of some use to you as a credit card account is beneficial in reestablishing a positive credit history after your Tucson Chapter 7 bankruptcy discharge. The benefit of not including a zero balance credit card is that you have a viable credit source immediately after your bankruptcy is discharged without having to reapply and wait for credit approval. At times, it may be difficult to find a credit card with decent interest rates after declaring bankruptcy.

    However, your bankruptcy is a matter of public record, and most large banks and finance companies routinely compare new bankruptcy filings to their own records. Even though you may not have a balance, the credit card company may cancel the card when they discover your bankruptcy filing. Thus, there is a risk in trying to keep a credit card through the bankruptcy filing process.

    If you have problems obtaining a credit card after filing bankruptcy, you may want to take a look at these credit card offers. These cards are designed for low credit scores and recent bankruptcy Filers. A list and details of the top cards can be found at: http://www.badcreditoffers.com/creditcards

    Please note that there are a few dangers that are associated with trying to keep a credit card account after bankruptcy. One danger is that the bankruptcy trustee may be able to demand that the card company turn over any large transfer of money used to pay off the account during a time when you were insolvent. If you do decide not to include a particular credit card in your bankruptcy, you must make sure that the credit card has no balance and you are in good standing with the company. Once you make your debt list and the bankruptcy is discharged you cannot change it. Any mistake or purposeful omission can cost you dearly after your bankruptcy discharge.

    Additionally, If you file chapter 13 bankruptcy you are prohibited from using credit cards during your bankruptcy. Please also remember that: Intentionally failing to disclose a debt in your bankruptcy could land you in serious trouble with the bankruptcy court. If you have a credit card balance, you must report it as a debt. (No matter how small the debt may be or if you are planning on keeping the card.) If you owe the credit card company money, you must report it. It would be recommended that if you have intention to keep a credit card open that you discuss your intentions and find out your options from an experienced debt relief expert like a bankruptcy attorney in Tucson AZ.

    Published By:

    The My AZ Lawyers
    By
    2 East Congress St. Ste. 900
    Tucson, AZ 85701
    (520) 306-8729

    My AZ Lawyers


    Arizona Bankruptcy Attorney, Lawyers For Bankruptcy In Glendale, Bankruptcy Attorney Mesa AZ, Lawyer For Filing Bankruptcy In Tuscon
    1731 West Baseline Road #101
    Mesa, AZ 85202
    5 stars - based on 14 reviews
    480-833-8000
    Phoenix@Bankruptcy-AZ.com

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