Author Topic: bankruptcy and american express  (Read 326 times)

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yellow jacket

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bankruptcy and american express
« on: September 13, 2017 01:57:49 AM »
I have had an american express card for over 30 years. I will be declaring bankruptcy soon.  I have a small balance on the card and it is easily payable.  Credit has been in the tank for sometime and yet american express has not closed the account.  What are the chances that amex will leave the account open if I file.

It would be nice to have one credit card after the bankruptcy.

Thanks.

Clydesmom66

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Re: bankruptcy and american express
« Reply #1 on: September 13, 2017 02:22:32 AM »
What are the chances that amex will leave the account open if I file.

ZERO.  Even if it has a zero balance.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

Jersey No Neck

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Re: bankruptcy and american express
« Reply #2 on: September 13, 2017 02:51:13 AM »
What she said.

yellow jacket

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Re: bankruptcy and american express
« Reply #3 on: September 13, 2017 03:53:28 AM »
Yet they have left the account open while I have tanked on about 15 other credit cards.

Clydesmom66

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Re: bankruptcy and american express
« Reply #4 on: September 13, 2017 04:21:29 AM »
Yet they have left the account open while I have tanked on about 15 other credit cards.

You have been VERY lucky then.  BK is the final blow and no creditor is going to leave the account open.  Count on it.  Your one hope is if it has a zero balance when you file and you don't burn them in BK they might not black list you.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

yellow jacket

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Re: bankruptcy and american express
« Reply #5 on: September 13, 2017 11:15:50 AM »
Thanks for the advise.  Guess you folks are right.  If they don`t close the account it would just be luck.

delandra

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Re: bankruptcy and american express
« Reply #6 on: September 14, 2017 09:47:34 PM »
BK is the final blow and no creditor is going to leave the account open.  Count on it.  Your one hope is if it has a zero balance when you file and you don't burn them in BK they might not black list you.

Err, I kept a charge account with a regional gas chain open through my second Ch7, by having a zero balance on it beforehand, ensuring they weren't paid enough ($600 in the 90 days preceding the filing) to trigger the payment reporting requirement, and not using it until discharge.  Somewhat unique circumstance, this particular outfit has never pulled an A/R (account review) inquiry in the 12+ years I've had the account.  They report to all three CRAs and I figured the old tradeline was worth keeping for my post-BK credit rebuild.

This obviously doesn't apply to Amex, they will find out, but there are small/regional creditors that don't obsessively pull A/Rs and/or subscribe to Lexis Nexus.  Such a creditor won't find out you filed unless you owe them money or made preferential payments.  There's no part of the bankruptcy code that mandates you close an otherwise good account.

In OP's case, I would close the Amex the day before filing.  Doubt they'll re-open it (some have had success with Capital One or Discover, reopening good accounts after discharge, but Amex is very hostile towards BK) but "Closed by consumer" is better than "Closed by credit grantor."  Beware the payment reporting requirement, >$600 in the 90 days preceding filing.

If you've paid enough to trigger reporting the Trustee may seek to recover the "preferential" payment(s), which means you'll "burn" them even without directly including them in the petition.  In that case, well, you may wish to explore how much you can get from them before you file, since the relationship is toast anyway.  Just be careful not to do anything that would trigger a presumption of fraud (purchases >$650 in the 90 days preceding filing, cash advances in the 90 days preceding filing, etc.) or non-dischargablity.  Need car repairs or groceries?  Purchases like that won't draw undue attention.
« Last Edit: September 14, 2017 09:52:00 PM by delandra »

BrokeBob

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Re: bankruptcy and american express
« Reply #7 on: September 14, 2017 10:18:58 PM »
Interesting.

I had an account with Amex, maybe about $150.  Never missed a payment.  When my credit rating went south, they closed it ASAP. 

I paid it off rather than have to deal with Amex for such a piddly amount. 

My wife had a much bigger account with Amex, and we went into arbitration with Amex and Zwicker.  We were very, very happy with the result.  NDA, though.  Her situation was extremely unusual, in that Amex really messed up that situation big time. 

 

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