Will AmEx cancel your card account during bankruptcy?

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biztrvlr26
 
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Will AmEx cancel your card account during bankruptcy?

Postby biztrvlr26 » Thu Feb 16, 2012 8:04 pm

So How does American Express handle a bankruptcy? If the card has at $0 balance a the time of filing the bankruptcy, it is not required to be reported on the list of credit cards in the filing. Will AMEX allow the charge card to be kept as long as it continues to be paid in full each month?
(Platinum Business Card)

Thanks for any insights offered!


Jdb3388
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Fear of bankruptcy, how will this affect me?

Postby Jdb3388 » Fri Feb 17, 2012 9:33 am

I fear that I may be facing a chapter 7. If I file and make certain that i don't owe Amex a single penny and they don't have to do a charge off, will they allow me to keep my Gold card? I don't want to give that up, and I've never missed a payment or anything, even tho I have a rather short history i am in good-standing. What do yall think?

CC Deville
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Postby CC Deville » Fri Feb 17, 2012 4:59 pm

I know that Visa International has a report available for all SSN's associated with a bankruptcy filing. If an issuing bank elects to receive this report (usually for a fee of course) then that creditor will receive notice of both the initial bky filing and the discharge. I would assume that AMEX has something similar in place. Even if an account has a $0 balance at the time of the bankruptcy filing (at least with a Chapter 7) the creditor can, and many times will, close the account due to the risk.

When my sister filed a few years back she only included two accounts from Chase. Her Citibank and Discover had a $0 balance and were not on her Schedule of Creditors (which is generally how a creditor is notified from the courts). Citibank found out about the bankruptcy and closed it while Discover did not.

Keep in mind too that AMEX receives monthly soft scores and if they see a declining score and a public record associated with the score, they could close it down at that point.

All of this is conjecture for what AMEX does (and fact based on other banks) of course. I do not know how AMEX handles these things..hopefully others who have been through this can assist you.

ooxs
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Postby ooxs » Fri Feb 17, 2012 8:30 pm

Not only American express, depending on the chapter you file, every card you own will be suspended.

Focus on your current situation, what you need to do to get a fresh start and don't worry about which account you will keep. I hope everything works out for you.

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PlatinumAMEX94
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Postby PlatinumAMEX94 » Sat Feb 18, 2012 2:47 am

My cardholder agreement clearly states any form of bankruptcy will automatically close the account and payment is due in full, including any Sign & Travel. A friend of mine went through the same thing and AmEx found out the very next month. If you don't owe them money you can reapply in 7 years and should be approved.
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CC Deville
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Postby CC Deville » Sat Feb 18, 2012 6:05 am

Jdb3388 wrote:I fear that I may be facing a chapter 7. If I file and make certain that i don't owe Amex a single penny and they don't have to do a charge off, will they allow me to keep my Gold card? I don't want to give that up, and I've never missed a payment or anything, even tho I have a rather short history i am in good-standing. What do yall think?


Based on what PlatinumAMEX94 stated, you will likely have your account closed. I would have assumed that a conservative lender like AMEX would have done this anyway. Your best bet is to make sure it is paid in full and like PA94 said, wait the 7 years and reapply. The new account will be backdated to your original Member Since date.

darobin77
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Postby darobin77 » Sat Feb 18, 2012 9:59 am

When i went through my BK some companies allowed me to reaffirm with the (agree to pay and they would reopen the account), i tried this with AMEX and it was a no go.

During the BK process AMEX may not be directly notified since you don't owe them anything currently but surly will pick it up during a Account Review and probably will be canceled.

IS this a personal BK or Business ? if its a Business BK you have be ok since they review your personal credit on the Small Business Cards...

YMMV, my bk was in the 90s.

dextmsg
 
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American Express

Postby dextmsg » Sun Apr 22, 2012 6:15 pm

A few years ago, I personally guaranteed an American Express business card for a small business where I owned 20% of the shares. Unfortunately, the business didn't survive the recession and we had to Chapter 7 it. I wasn't working for the business at the time, and had my own full-salary job. I immediately paid off the card on my own ($5,000) when the business couldn't, but that wasn't good enough for AMEX.

They of course cancelled that business card, but also cancelled all of my personal cards, saying that Bankruptcy is a violation of the Terms and Conditions, and that if I violate the terms of one card, all of my other cards are considered in default as well. So they were legally entitled to cancel everything. But that doesn't mean it was the right move for American Express. (My other banks left my personal accounts untouched.)

I did everything right here. I had promised to pay the business debt. The business couldn't pay anymore. So I did what I promised, and paid every cent of the $5,000 immediately. And they still decided to punish me. I won't be using any more American Express business cards for this reason. They went after my personal accounts over such a small sum, even when I had fulfilled every obligation to pay the company's debts.

As far as I'm concerned: American Express is NOT the right company for small business, despite their marketing.

Moneytalks
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Postby Moneytalks » Tue Apr 24, 2012 9:54 pm

dextmsg wrote:I did everything right here. I had promised to pay the business debt. The business couldn't pay anymore. So I did what I promised, and paid every cent of the $5,000 immediately. And they still decided to punish me. I won't be using any more American Express business cards for this reason. They went after my personal accounts over such a small sum, even when I had fulfilled every obligation to pay the company's debts.

As far as I'm concerned: American Express is NOT the right company for small business, despite their marketing.


Interesting! Did you talk with them to see if you could work something out, or did you just watch everything fall apart??? I can see why you're bitter, but, Amex is still offers some nice perks compared to the other cards...and I guess that's part of entrepreneurship: risk and reward, right?
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FastSRT8
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Postby FastSRT8 » Wed Apr 25, 2012 2:02 am

dextmsg wrote:As far as I'm concerned: American Express is NOT the right company for small business, despite their marketing.


Wow sorry to hear you were treated this way. Seems like they threw the book at someone who showed responsibility.
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