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Worth it to pay off old trade line to keep it through BK?


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I am considering a chapter 7 bankruptcy and wonder whether it is worth paying off my two Discover Card trade lines that are joint with my wife. These date back to 1992 and 1994. I figure that by paying them off in full before the BK, that discover would not be included in the BK and thus not close these accounts. These accounts in turn would then help rebuild my credit score as they would be relatively old tradelines.

The cost to do this is about 10% of my annual salary.

My sense is that it is worth it and that I would have to pay both off to keep discover from closing the one I paid off when the unpaid one was included in BK.

What do folks think? Is this money well spent now?



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If you pay it off then file right away you have to list them in your filing due to the preferential payment. If you pay them off and then wait a few months, then you won't have to list them. They are not considered a creditor.

However, did you ever see those soft inquiries on your credit reports that pop up month after month? That is your creditors checking in on you. Once you file, Discover will close immediately upon seeing the filing anyway- even if you have a $0 balance.

I think you would be wasting your money. Not only are you likely to get the card closes anyway, but even if you pulled it off, why would you want to? Take your cash after the filing and open a new secured card at a credit union.

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