Used American Exp card now filing bk need advice

[mindy0795]

I think this may be an issue but not sure and would like some advice. First of all I lost my job in November, I am now filing a chapter 7 bk. I used my American Express card also in November but used less than $250.00 on it to buy groceries. It is the type of card that the balance has to be paid in full each month. Needless to say there is a $900.00 balance on it cause I used it in October also. I always used this card to purchase fuel, groceries and pay cell phone bill. I had never been late and had this card for 5 years, will this be an issue, need to file BK by February 1st.

[magyar123]

Since your last purchases in that card were for necessities (groceries) and it was still in November - a normal credit card card would probably not raise a stink. But you're dealing with American Express - probably the most bankruptcy unfriendly outfit currently marching on this earth. So be prepared for the worst.

[Duncan]

But you're dealing with American Express - probably the most bankruptcy unfriendly outfit currently marching on this earth. So be prepared for the worst.

Is this statement specific to Amex cards issued by Amex or does it also include Amex cards issued by another bank like BOA??

[justbroke]

Is this statement specific to Amex cards issued by Amex or does it also include Amex cards issued by another bank like BOA??

If it's a Bank issued AMEX (like Bank of America), it depends on the Bank. Generally, cards issued by American Express or Centurion Bank meet with not too friendly collection activities. This has been the hallmark of American Express forever. No need to worry.

To put you at ease... I had several pieces of AMEX plastic, and even used some close to filing, without a peep. I actually used another card -- not AMEX -- days prior to filing, and even made a payment after filing (stupid automatic payments). No peep.

The key is, was it fraud or does it look like you abused the card and/or system. With a balance that low, I don't see AMEX wasting its time.

[JRScott]

In your charging they would have to prove they were extravagant and fraudalent charges. Food and gas do not meet that expectation in the courts. Now they will call and harass you up til you file, but there is not much they can do once you file.

[mindy0795]

Thanks for the info, I feel a little better now.... Hopefully everything goes smoothly. I did read somewhere as long as the purchases are under $500 and has been in the last 70 days and as long as it wasn't for luxury items it would be ok.

[StartingOver08]

Thanks for the info, I feel a little better now.... Hopefully everything goes smoothly. I did read somewhere as long as the purchases are under $500 and has been in the last 70 days and as long as it wasn't for luxury items it would be ok.

You need to put at least 90 days usually between having a charge and filing. 70 days is for balance transfers and cash advances.

Food and necessities should not be an issue at all. Luxury items are an issue, food is not a luxury (although it can be! )