Zero Balance Cards

[Cali]

I have a lot of zero balance cards and I was wondering if they are going to close them because of the BK, do they do it right away or is it after discharge?

[JRScott]

It depends on the cards Cali. Some will close the account due to the bankruptcy. This will most likely be done when they pull your credit report which they do a few times a year, so though it might survive a short time it is unlikely to survive more than 90 days. Most of the big card issuers cancel them even with a 0 balance. Those that are friendly to bk may let them stay though.

[Cali]

Thanks.

It depends on the cards Cali. Some will close the account due to the bankruptcy. This will most likely be done when they pull your credit report which they do a few times a year, so though it might survive a short time it is unlikely to survive more than 90 days. Most of the big card issuers cancel them even with a 0 balance. Those that are friendly to bk may let them stay though.

[lt2828]

Do you know if Amex or Capital One cancels them?

[morallyBR2]

Most cancel them, you are a high risk for them after you file a bankruptcy.

[Cali]

I guarantee Amex will cancel them.

Do you know if Amex or Capital One cancels them?

[Flamingo]

The big banks will almost surely cancel any card you have linked with them if one of them is included in your bankruptcy; i.e., file on a Mastercard/Visa and the bank carry that also takes care of various department store credit cards. Anything associated with them upon your filing will almost surely get cancelled out. The ones that may survive are maybe speciality store cards or smaller department store cards - we had Western Auto and Dress Barn survive our filing. Don't count on anything surviving as the chances are good they will all get cancelled out. Again as with other stuff in BK, what happens to others may not occur with you. Ride it out and see what happens.

[AngelinaCatHub]

Here is something strange. I did not declare two little accounts I wished to pay off outside of bk. Reason is, I used one after my bk filed. Both were about $800 each. I did not get a bill from them for some time so I went to the store, Lowes, and Radio Shack. I wished to pay on the account. Neither Lowes nor Radio Shack could find my account. Lowes said zero balance and zero credit, Radio Shack was no account exists. I was told here that they both were a sub account out of some major bank. Answer was they ate the debt. It was not my fault or decision so it is their choice to write off the debt. I fully intended to pay it. I consider it a little plus in my favor. ‘Hub

[AngelinaCatHub]

Question, Cali. Why would you wish to use them again after your bk? If and when (120 days now after 341) I get my discharge, I wish to go cash all the way. I will have my fake Visa Card only to secure a motel or such, but I will pay cash at check in. There is nothing more I need so bad as to mortgage the future again. This stress and all is a good lesson teacher. I want my new start and a sound budget then. Only my opinion. ‘Hub

[Cali]

Where in my posts does it say I wanted to use them?

Question, Cali. Why would you wish to use them again after your bk? If and when (120 days now after 341) I get my discharge, I wish to go cash all the way. I will have my fake Visa Card only to secure a motel or such, but I will pay cash at check in. There is nothing more I need so bad as to mortgage the future again. This stress and all is a good lesson teacher. I want my new start and a sound budget then. Only my opinion. ‘Hub

[lillaimof2kids]

I filed May 5. Some of my 0 balance cards have already been closed, some aren't. They're all very old...way back to 93.

[kornellred]

Hmmmm....how things have changed. I filed for Ch 7 in 1994 (not a typo). I did not have any money to pay the attorney, so I asked him if I could take a cash advance on a Citibank card that I had a zero balance on in order to pay him. He said it was OK as long as I did not declare the debt in the bankruptcy. I did that and paid him.

Citibank did not cancel my card. Back then, I wondered when they would get around to canceling, but I stopped wondering after a couple of years. It's no wonder this time around, however - in my current Chapter 13 I owed Citibank more than 17 grand.

In the more than 20 years I had that card, I paid them twice that amount in interest. They didn't lose a dime on me.