Macy's credit card still open

[jange]

i decided to pull my free credit report today. Ch 13 is there as well as all the accounts included in our bk. our mortgage is reporting as current.
I did have one credit card for Macy's that didn't have a balance on it when we filed and I was surprised to see that the account is still open and being reported as current. I have not used it in a few years. Did anyone have any accounts that stay open? Do you think Macy's will close it? I am not planning on using it.

filed 1/11/10
confirmation 6/22/10?

[Flamingo]

A very high percentage of zero balance cards that survive a BK filing will get closed out; it can occur soon; it can occur several years from now. The majority are closed within the first several months after filing once the creditor gets wind of the BK filing. It will be soon if Macy's is associated with any bank you included in your filing; I believe Chase handles the Macy account but in any event, do not be surprised if your account is eventually closed.

[jange]

thanks Flamingo, if it is Chase, then it will probably will get closed soon since we included 2 Chase cc's in our bk, though they were in my husband's name and the Macy's card is in my name. Chase also has my mortgage which is being paid outside of the tt payment as it is current.
I was just really surprised to see it open.

[ColoradoBell]

What if not one of your credit cards is balance owing? And if no mortgage appears? What if nothing except judgment liens and property taxes are debts that you owe? If the judgment liens are avoided, and the property taxes are paid....then your credit report shows bk but nothing else?

Sorry, the question would be : would your cc then close your accounts? And would they have grounds?

[lrprn]

What if not one of your credit cards is balance owing? .... would your cc then close your accounts? And would they have grounds?

It doesn't matter if there's no balance on a major personal credit card. All your major cc companies find out immediately that you've filed bk through their shared database and then cancel your card. If you look at your original agreement that you signed to get the credit card, typically cc companies can cancel your card for pretty much any reason they want at any time they want.

So far, at least for those members here in the forums, not a single major cc (Mastercard, Visa, etc.) has survived filing. Smaller retail and local cc's sometimes do survive (Penneys, Kohls, gas cards), but you can't count on that either.

Bottom line is that you have to learn to live without credit and spend within the income that you bring home to make sure you never end up having to file bk again due to money mismanagement.

[meateater]

For what its worth, here's my experience:

My Macy's survived BK. I had totally forgotten about it, then about 2 years post BK, they sent me a new card in the mail (they were changing from gold to red or something like that). I've used it sporadically for the past few years, and the credit limit has gone up. I had also BK'd two chase accounts.

Speaking of Chase, I got a providian visa after BK. They later merged with washington mutual, which was then taken over by Chase. I don't know if chase plans to cancel me (or if I am just below the radar), but I do get notices about their new programs. And, they have not totally lost the BK stuff, when the accounts merged, I found that they have a very old phone number for me, one they would have had when it was a chase account. The credit line gets increased by a few thousand dollars every few years.

I am also receiving pre-approval notices to get a discover card, another account I BK'd. they are using the same address they had when I went BK. I'm not planning to apply for the card, but thought I'd share this with everyone worrying about reestablishing credit.

I have never had a car loan or mortgage, but did have student loans which I continued paying through BK. The BK still shows on the public records portion of my credit report. I primarily pay cash and pay off any cards in full each month as I am wary of sinking into the credit trap again.

[ColoradoBell]

Irprn: (I never abused my credit and always paid my cards in full every month and never ever lived above my means, quite the contrary.) I'm not excessively worried about cancelling my cards, although they certainly are easier for me than carrying around cash or checks. My credit report is completely clean as of now...shows that everything I've ever bought (car/mortgage) was paid in full and on time and all cc's paid in full on time. I realize they share a database; I guess I was wondering if the cancellation is just automatic or if they actually look at circumstances. Again: my debt is X's judgment liens put on my house which impair my homestead.

Thanks, meat...I guess you still look like a worthy gamble to those cc people!

[pepperoncini]

My Macy's also survived my BK7.

I think it's a YMMV thing...

[jange]

It will be interesting to see what happens with it. I had not used the card since 2007 and I don't intend to use it now. Our ch 13 is for 5 years, so they have plenty of time to close it. I did have a JC Penny with a zero balance that was closed.

I have been using cash/debit card for at least a 1 year before we filed.

filed 1/11/10
confirmation 5/18/10 postponed
confirmation 6/22/10?

[Flamingo]

As I've posted in the past....I had a Dress Barn charge survive our filing (0% at filing). I used it on and off for work clothing for six years charging small amounts and paying off immediately. Went to use it in the fall of 2008 and was told to contact customer service as it was declined (no balance owed). Customer Service advised me it was "due to bankruptcy showing on my credit report." Note the card during that time even had its credit limit increased in 2006. We filed 4/02; discharged 8/06.

Any surviving credit card from a BK filing can be closed out at any time after filing. Don't bank on it staying open and if closed out, it will be shown as being "closed by creditor" which is also not a good thing.

[ssmdem]

Any surviving credit card from a BK filing can be closed out at any time after filing. Don't bank on it staying open and if closed out, it will be shown as being "closed by creditor" which is also not a good thing.

Does that mean any open credit cards I have now with a zero balance I should close? Home Depot, Sears, Ashley Furniture, etc.

[flyinbroke]

Macy's card is run by the Department Stores National Bank. This includes the Visa branded card as well as the Macy's charge. From what I understand, Citi underwrites them though it is not reported as a Citi account.

[debtinohio]

They closed my 0 bal Macys card since I had 2 with balances :-( also closed were my Sears charge, Home Depot, Lowes, Pennys all at 0 balance.

I had a couple of small major credit cards without balances and they are still open but they were TINY credit lines like $500

I miss the Macys card - great sale offers!

[epiphany]

i decided to pull my free credit report today. Ch 13 is there as well as all the accounts included in our bk. our mortgage is reporting as current.
I did have one credit card for Macy's that didn't have a balance on it when we filed and I was surprised to see that the account is still open and being reported as current. I have not used it in a few years. Did anyone have any accounts that stay open? Do you think Macy's will close it? I am not planning on using it.

filed 1/11/10
confirmation 6/22/10?

My Macy's is still open a year and a half after discharge and I did BK on Chase. Like you, I had no balance on the Macy's card so it was not included in my petition. But the available credit went from something like 2K to 100 dollars. I haven't used it but am leaving it open since it costs me nothing.



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