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Fortunately, however, there are some exceptions. For instance, if you have a credit card at zero balance for a long time, you do not necessarily need to report it during the filing. But if you have unpaid credit card, don’t paid off balance to get down to zero. For starters, it can be viewed illegal, because you favor one creditor over other creditors. Creditors can challenge the legality of your bankruptcy.
The chance is your credit card with “zero balance” will be cancelled anyway. Credit card companies tend to punish bankruptcy filers, even if bankruptcy is not related. Some people just choose not to keep quite about the “zero balance” credit cards and hope to get by. It is not only a bad plan. It is also unethical and illegal. Don’t take your chances.
Many bankruptcy filers try to use loopholes of the laws and wreck up credit card bills in a few months prior to file bankruptcy. They figure their credit card debts will be discharged after filing bankruptcy. However, the court will usually exclude rapid credit card activity near the filing of a bankruptcy, or it may even nullify the entire bankruptcy.
You best strategy is to wait until the bankruptcy filing has cleared. Then, you can slowly rebuild your credit.
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