What happens when you have a credit card with no balance?

[dp1969]

Last week we paid off just one of our credit cards. Why? Because we bank with the same Credit Union and have our car loan with them. My sister-in-law also works for them (ironically in the loan repo dept) and said if we filed BK with them, they would close out our accounts. Our children have savings accounts, linked with ours. Just seems like a hassle so better to pay them off.

So, when we filed today, the attorney went over the list of creditors we have a debt with and our Credit Union was not listed...as there was not a balance due.

Will the Credit Union be notified anyways...will we be forced to close out the Visa credit card?

[no_it_all]

My guess is that they were not listed on the Creditor Matrix, so they probably will not be notified.

[Flamingo]

Since the credit union is not a listed creditor, they will not be sent anything by the BK court; however, if the credit union runs credit reports on you for any reason and sees the BK filing, they may or may not close out those accounts. The majority seem to get closed but there are some that do not. No one can tell you for sure what will happen to you so be prepared if they do get closed out.

[CATCHMEIFYOUCAN]

I had a problem with GEMB credit, I had lazer eye surgery and ended up finally paying it off in April 06. I filed in July 06 and to this day they still have it listed under my BK as (discharged/paid off). Which sucks as I'm sure is damaging to my credit report somewhere.

[Flamingo]

I had a problem with GEMB credit, I had lazer eye surgery and ended up finally paying it off in April 06. I filed in July 06 and to this day they still have it listed under my BK as (discharged/paid off). Which sucks as I'm sure is damaging to my credit report somewhere.

You need to dispute it on your credit reports. Explain it was paid off prior to your filing and provide them with the date of your filing and that it was not included in your bankruptcy filing.

[biotechsolution]

If your car loan wasn't paid off it has to be listed..

was your car loan with the CU already paid off??
IF not they should have been included in your matrix..

[Boscoe]

Since you have the car loan with the CU, they must be notified of the bk, as you would have listed the car as an asset and the loan as a liability on your BK papers.

Like was said above, the majority of cards in this situation get closed - but not all. My Wamu card was closed even with a zero balance because we bk'd a mtg loan with them.

But you were smart to pay that off given the car loan and other business you do with the CU. Many are very strict with their "cross collaterization" policies....

[dp1969]

Since you have the car loan with the CU, they must be notified of the bk, as you would have listed the car as an asset and the loan as a liability on your BK papers.

Like was said above, the majority of cards in this situation get closed - but not all. My Wamu card was closed even with a zero balance because we bk'd a mtg loan with them.

But you were smart to pay that off given the car loan and other business you do with the CU. Many are very strict with their "cross collaterization" policies....

We reaffirmed the car loan so, hopefully, everything will be good. Even if they cancel the credit card, I'm not that concerned. Not like we have any other credit cards anymore, right?

[arkienurse]

I had a problem with GEMB credit, I had lazer eye surgery and ended up finally paying it off in April 06. I filed in July 06 and to this day they still have it listed under my BK as (discharged/paid off). Which sucks as I'm sure is damaging to my credit report somewhere.

Us too. We had a GEMB card through a local furniture/appliance store. Had a zero balance when filing, but still shows up as included in bk. I tried the online dispute last year and nothing changed. This year I am more worried with the ones showing charge off(when the claim was secured and paid 100%) than the ones showing IIB.

[Ming_Ming_Duck]

Yep, me too. I desperately wanted to keep this card, because then I would've had a card to use after the bk, without having to struggle to apply for new credit. But even though the account was always kept current--was never late or missed a payment--and even though it had a zero balance, they closed it.

The worst part is that they never even notified me that it was closed. I needed to use the card (yeah, yeah, I know I shouldn't of), and checked my account online the day I was going to use it. By the time I reached the store and went to use the card, it was cancelled. Embarrassing. I got the, "sorry, it's asking for another form of payment..." and it was like, whaaat?

My attorney told me I could contact them to see if I could get the account back, but I didn't.