diff --git a/lightningd/channel.c b/lightningd/channel.c
index 6908bb63c..64b8cfa60 100644
--- a/lightningd/channel.c
+++ b/lightningd/channel.c
@@ -113,7 +113,7 @@ static void destroy_channel(struct channel *channel)
 void delete_channel(struct channel *channel)
 {
 	struct peer *peer = channel->peer;
-	wallet_channel_delete(channel->peer->ld->wallet, channel->dbid);
+	wallet_channel_close(channel->peer->ld->wallet, channel->dbid);
 	tal_free(channel);
 
 	maybe_delete_peer(peer);
diff --git a/lightningd/test/run-invoice-select-inchan.c b/lightningd/test/run-invoice-select-inchan.c
index a2e615ba7..50a7e3e1e 100644
--- a/lightningd/test/run-invoice-select-inchan.c
+++ b/lightningd/test/run-invoice-select-inchan.c
@@ -461,9 +461,9 @@ void txfilter_add_scriptpubkey(struct txfilter *filter UNNEEDED, const u8 *scrip
 /* Generated stub for version */
 const char *version(void)
 { fprintf(stderr, "version called!\n"); abort(); }
-/* Generated stub for wallet_channel_delete */
-void wallet_channel_delete(struct wallet *w UNNEEDED, u64 wallet_id UNNEEDED)
-{ fprintf(stderr, "wallet_channel_delete called!\n"); abort(); }
+/* Generated stub for wallet_channel_close */
+void wallet_channel_close(struct wallet *w UNNEEDED, u64 wallet_id UNNEEDED)
+{ fprintf(stderr, "wallet_channel_close called!\n"); abort(); }
 /* Generated stub for wallet_channel_save */
 void wallet_channel_save(struct wallet *w UNNEEDED, struct channel *chan UNNEEDED)
 { fprintf(stderr, "wallet_channel_save called!\n"); abort(); }
diff --git a/wallet/wallet.c b/wallet/wallet.c
index cd783bf78..5def5da15 100644
--- a/wallet/wallet.c
+++ b/wallet/wallet.c
@@ -1213,13 +1213,57 @@ void wallet_channel_insert(struct wallet *w, struct channel *chan)
 	wallet_channel_save(w, chan);
 }
 
-void wallet_channel_delete(struct wallet *w, u64 wallet_id)
+void wallet_channel_close(struct wallet *w, u64 wallet_id)
 {
+	/* We keep a couple of dependent tables around as well, such as the
+	 * channel_configs table, since that might help us debug some issues,
+	 * and it is rather limited in size. Tables that can grow quite
+	 * considerably and that are of limited use after channel closure will
+	 * be pruned as well. */
+
 	sqlite3_stmt *stmt;
+
+	/* Delete entries from `channel_htlcs` */
 	stmt = db_prepare(w->db,
-			  "DELETE FROM channels WHERE id=?");
+			  "DELETE FROM channel_htlcs "
+			  "WHERE channel_id=?");
 	sqlite3_bind_int64(stmt, 1, wallet_id);
 	db_exec_prepared(w->db, stmt);
+
+	/* Delete entries from `htlc_sigs` */
+	stmt = db_prepare(w->db,
+			  "DELETE FROM htlc_sigs "
+			  "WHERE channelid=?");
+	sqlite3_bind_int64(stmt, 1, wallet_id);
+	db_exec_prepared(w->db, stmt);
+
+	/* Delete entries from `htlc_sigs` */
+	stmt = db_prepare(w->db,
+			  "DELETE FROM channeltxs "
+			  "WHERE channel_id=?");
+	sqlite3_bind_int64(stmt, 1, wallet_id);
+	db_exec_prepared(w->db, stmt);
+
+	/* Delete shachains */
+	stmt = db_prepare(w->db,
+			  "DELETE FROM shachains "
+			  "WHERE id IN ("
+			  "  SELECT shachain_remote_id "
+			  "  FROM channels "
+			  "  WHERE channels.id=?"
+			  ")");
+	sqlite3_bind_int64(stmt, 1, wallet_id);
+	db_exec_prepared(w->db, stmt);
+
+	/* Set the channel to closed and disassociate with peer */
+	stmt = db_prepare(w->db,
+			  "UPDATE channels "
+			  "SET state=?, peer_id=?"
+			  "WHERE channels.id=?");
+	sqlite3_bind_int64(stmt, 1, CLOSED);
+	sqlite3_bind_null(stmt, 2);
+	sqlite3_bind_int64(stmt, 3, wallet_id);
+	db_exec_prepared(w->db, stmt);
 }
 
 void wallet_peer_delete(struct wallet *w, u64 peer_dbid)
diff --git a/wallet/wallet.h b/wallet/wallet.h
index 23c91e7ae..bb6224644 100644
--- a/wallet/wallet.h
+++ b/wallet/wallet.h
@@ -454,9 +454,9 @@ void wallet_channel_save(struct wallet *w, struct channel *chan);
 void wallet_channel_insert(struct wallet *w, struct channel *chan);
 
 /**
- * wallet_channel_delete -- After resolving a channel, forget about it
+ * After fully resolving a channel, only keep a lightweight stub
  */
-void wallet_channel_delete(struct wallet *w, u64 wallet_id);
+void wallet_channel_close(struct wallet *w, u64 wallet_id);
 
 /**
  * wallet_peer_delete -- After no more channels in peer, forget about it