Corporate Card in Question

[tknj99]

Hi All,
I am about a week away from filing. My question relates to a corporate card that i received from my employer. I usually have a $120 balance monthly that my employer reimburbes me for. I just paid it on the 19th of August. If i file at the end of this month and there is a $120 balance on that card, will I have to include it in the filing?
My lawyer says i shouldnt have to include it, but i was just worried. and thinking maybe i should try to pay the outstanding charges from my checking right before i file or pay with money order.
Im just not sure how the trustee will take the payment made to the card in advance if it shows in my bank statements. I would hate for it to become an issue.
Does anyone have experience with such an issue?
If i made the payment after i filed around 9-19-10, then there would be no debt on the date of the future 341 meeting...

[SMinGA]

Its a small enough amount that the trustee should not take issue with it - needs to be $600+ in recent 90 days to hit the trustee's radar.

Most likely this card will get canceled - if its billed in your name/ss# - when they do an account review and see you've filed. You may need to find an alternative reimbursement method.

[drowning123]

Tkn, pay it off and not include it in your filing. You don't want your job all up in your business, right?

[tcreegan]

corporate card

Hi tknj99,

My experience w/ corporate cards is that employees are "authorized" users but are not on the account or billing at all. If that is the case, you would not include it in the BK and continue paying/using as normal.

If you are in a smaller business, you may be an actual authorized user and included on the account/billing by name and soc sec #. Paying the card to zero w/ such a small sum, the trustee will not even blink. Bigger problem is card issuer closing the card account w/ the BK filing. Have you talked to your boss about this?

Tom in Colo

[Flamingo]

Most corporate cards are in your name based on your crediit; you need to check with your HR Department how the card is handled...is it in the company's name for your use with your name on the card or is it based on your credit and in your name. If you filled in a form at hiring for the employer to submit to the card issuer, the latter is your situation.

You may need to discuss this situation with your employer because the chances of the card being cancelled out are high and it would help avoid future problems/issues with your travel and with your employer being notified the card was cancelled. Also you may need to check your employment contract if you have one. Many contain a bankruptcy clause that in the event you file, you need to inform your employer.

[tknj99]

One other dilemma.... i paid $1000 in early July of this year to this card for expenses incurred in training. I will be filing next week. I dont believe that the lawyer will be including this card in my filing but I was worried if asked at the 341 meeting if ive paid any creditor over $600 in the last 90 days. Technicaly i did.. but not sure if it counts as they are not on my credit report and HR said that they only report to the credit agencies if im over 90 days late..
Anyone have any experience with this?

[tcreegan]

odd

Hello again tknj99,

I dont believe that the lawyer will be including this card in my filing
they are not on my credit report

This sounds like it is not your card

HR said that they only report to the credit agencies if

This sounds like it is your card

Have you talked to HR and asked them about the card and the BK?
Have you talked to your lawyer about the card (not in general, all the details)?

I am worried you are going to get burned here.....

Preferential payment to a single creditor....
HR gets notice of canceled card due to BK, you need card for work....

Usually pays to be proactive with these sorts of things,

Tom in Colo

[nfreeze]

I just ran into this issue. Have a company credit card which I am an authorized user. Filed BK on 8/12. Went to the post office to mail a package and went to use the credit card. It was denied. Called HR to see if we were on credit hold. They called the credit card issuer (Credit Card Services Inc) and a rep told them to have me call them directly. When I called, they told me it was canceled due to the BK filing and that I had to sign a new application and have the owner sign it and resend back in. They said they would issue a new card (New account # as well) but the old one had to be clased out as it was a PRE-BK card which I could have included in my BK. The new card and purchases AFTER my BK are new debt and could NOT be included in the BK.

Since I am the GM of a small company (5 employees), this is a pain but I guess it is normal. I had no clue this would effect the business card.

Just my experience.......

[backtoschool]

Filing for bankruptcy will affect any card that has your social security number and is issued to you directly, including corporate cards. The only corporate cards that will not be affected are ones that the company completely guarantees and that issue cards regardless of credit history. These are cards that the company pays directly. (ie you don't get a bill, and you don't have to pay and get reimbursed.)

[tknj99]

Thanks for the help guys.. I found out from HR who relayed from USBank that the card is not a credit card and only a vehicle for corporate expenses and that it shouldnt be included in BK as personal debt or creditor. Also.. i asked if it would be closed and they said No, but it would probably be reducted to a Travel/Expenses only card after they do a credit risk sweep in the future... which is fine with me