I filed for BK back in March and my husband did not. He wanted to keep his Amex which he uses for work. When my attorney pulled my credit report I was surprised to find the Amex listed, since I am just an authorized user. I decided (perhaps unwisely) not to declare it, since to the best of my knowledge (before I saw the report) it was not one of MY debts. My husband was afraid of creating a red flag and getting in trouble with Amex. Since he wasn't declaring BK, we figured it was not an issue. Well, now he has changed his mind and is thinking of declaring BK for himself after all. Since I never declared the Amex it will not be discharged (am still awaiting my own discharge), so I assume I will be responsible for it (even though Amex is a pay in full charge card, my husband actually has a $35,000 balance on it from the Sign and Travel program). Since I will be responsible for the charges anyway, he might as well keep the card. Is it possible to reaffirm a credit card in BK? Chapter 7, I think, although maybe he will do 13.
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If he's filing for sure and you haven't been discharged is it too late to amend your papers and add them? The court here said that we could amend until our discharge date. -
I suppose it is possible, but wouldn't that hold up my discharge? Amex hasn't even been notified. They would have to be notified, given a chance to object. etc. I am literally DAYS AWAY from discharge! I have been very eagerly anticipating it too. Very annoyed at my husband for all of this. He should have just filed along with me. I think he is just going to have to suck it up and keep the Amex or not file at all.Comment
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Let me get this straight. You'd rather reaffirm $35K on a credit card rather than delay your discharge?Originally posted by sah2 View Post
Case Closed > 2/08/2010Comment
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It's not uncommon for Amex to appear on your reports when you are nothing other than an authorized user and have no financial responsibility what so ever.
Just because it's listed on your report doesn't mean you will owe it.Comment
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Well, the problem is he really does need this Amex for business purposes. He owns his own business and uses this Amex Platinum for all business expenses, which later get reimbursed by clients. If he had no credit card or charge card he would be seriously hindered. So my responsibility is not the only reason for reaffirming it. It was because of the Amex that he didn't want to file initially. The good thing about Amex is that there is no spending limit. He can charge $10,000 in one month and get reimbursed. If he files for BK and has only a debit card, he cannot do his job. So if he could file and keep this one card and discharge all his other debt, he would be in much better shape. Believe me, $35,000 is nothing compared to his other debt.Comment
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If he files and reaffirms the Amex card, don't expect to be able to charge on it.
Amex will almost immediately suspend all charging privileges. And close the account as soon as it's paid off.
It very possible immediately upon filing they'll close the account, assign/sell it and any of their BK rights to a junk debt buyer that specializes in bankruptcy recovery, and any reaffirmation will really be reaffirming with the junk debt buyer.
I don't want to be overly negative, but Amex is well known for their aggressive data mining and profiling -- there's a very good chance his account is at risk for suspension of charging privileges anyways because you filed. I've read many posts about Amex closing a girlfriend/roommate's card because someone at the same address defaulted on their card. I would imagine a spouse would be at least as important in their profiling metrics.
It's very rare for someone to be able to keep a small store card or a small credit union card through the bankruptcy -- never mind a card from a prime issuer allowing for large purchases.Comment
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