Does AMEX card survive Chapt 7?

[BKDefender]

Because BK hits your credit by 100-200 points (at least that's what I've seen on most clients), if you have not defaulted on your cards then it hurts less and you recover quickly. If the client can afford to pay the minimum on the cards then I tell them the pros & cons to doing so - pro=you're only down 75-100pts after one year, cons=you're down 100-200pts for default and 100-200 points for BK so after a year you'll probably have recovered to where your drop was 250-300 pts.

--William

[backtoschool]

Amex is very bankruptcy unfriendly, and they do regular in-depth credit report reviews of their customers. If somehow your amex survived, (it would have to have a zero balance when you file to survive, otherwise you have to include it in your petition), they will close you when they review your credit reports and see the bankruptcy.

[ryan]

I'm not seeing how maintaining payments on one card is smart.

I've been told that it would show 'preference' and would be viewed negatively by the BK trustee. Is this no longer the case?

[BKDefender]

Paying unsecured creditors is a 'preference' but the Trustee is only authorized to pursue reversal of preference payments if the payments to any one creditor is $600 or more during the 90 days prior to filing (or 1 yr if an insider.) If it is less than $600, the trustee lacks authority to force return of the payment(s).

--William