Bankruptcy and American Express

[FrazzledinNJ]

This will be the first time in 20 years I will be unable to pay my AMex bill this month. I am preparing to file but won't be able to until April 2014. This is due to a job loss and medical bills. I will stop making payments to amex in September. I have other credit cards as well but I have heard horror stories about Amex. (all unsecured except mortgage)

I owe a huge amount (over $35,000 to them) and I have heard they show up at creditor meetings, sue within 3 months, file ap's, etc. I'm not really concerned so much about an ap being filed since there were never any luxury purchases, more than 6 months passing before card last used, etc.

I am more concerned with a lawsuit and not being able to wait until April 2014 to file. I will be filing a chapter 7 (way under median) and doing a stay and pay with my home. I don't have any equity in my home but not underwater either. I owe just about what the current value is. I know amex (and my other creditors) will be after me since they will see on my credit report I am paying my mortgage and not them. I have no assets. My car is 10 years old and no savings accounts or valuable personal property.

Does anyone in NJ have expereince with Amex? Do they really file lawsuits fast and show up at creditor meetings? Will me making my monthly mortgage and not paying them make them sue faster?

[patieboy38]

This will be the first time in 20 years I will be unable to pay my AMex bill this month. I am preparing to file but won't be able to until April 2014. This is due to a job loss and medical bills. I will stop making payments to amex in September. I have other credit cards as well but I have heard horror stories about Amex. (all unsecured except mortgage)

I owe a huge amount (over $35,000 to them) and I have heard they show up at creditor meetings, sue within 3 months, file ap's, etc. I'm not really concerned so much about an ap being filed since there were never any luxury purchases, more than 6 months passing before card last used, etc.

I am more concerned with a lawsuit and not being able to wait until April 2014 to file. I will be filing a chapter 7 (way under median) and doing a stay and pay with my home. I don't have any equity in my home but not underwater either. I owe just about what the current value is. I know amex (and my other creditors) will be after me since they will see on my credit report I am paying my mortgage and not them. I have no assets. My car is 10 years old and no savings accounts or valuable personal property.

Does anyone in NJ have experience with Amex? Do they really file lawsuits fast and show up at creditor meetings? Will me making my monthly mortgage and not paying them make them sue faster?

I owed a lot more - had both personal and business cards with them- Im in NJ. They will file POC's but don't expect them to show up. I don't think any will unless they suspect fraudulent usage. I stopped using all cards and made an attempt to repay for 6/8 months before I decided to file. I would have paid it if I could have.

[FrazzledinNJ]

I owed a lot more - had both personal and business cards with them- Im in NJ. They will file POC's but don't expect them to show up. I don't think any will unless they suspect fraudulent usage. I stopped using all cards and made an attempt to repay for 6/8 months before I decided to file. I would have paid it if I could have.

Thanks for the info! I see you are in NJ too. Did they sue you before you filed or was it just endless phonecalls and letters?

[patieboy38]

Just phone calls (including Job), I paid what i could but it always came up short so I was always past due. Tried to climb out but couldn't. Once I filed , I didn't hear from them again - this was 4 years ago. Not sure they will ever give me credit again. I do have an AMEX serve now.

[tobee43]

were from nj but filed in florida and owed them a bucket full. they never bothered with us and even if they do or did, they lose unless they prove you committed fraud using their card/credit. (doubtful as the proofs are pretty high). don't worry about them so many creditors attempt to make you feel they are excluded from the bk laws, i assure AMX is not.

[FrazzledinNJ]

Thanks for the responses Patieboy and Tobee! Glad to hear neither of you were sued by amex prior to bankruptcy.

Anyone in NJ sued by amex and how long after payment stopped?

[jange]

In PA, but I owed AMEX about 14K. The called me and also family. They also sued actually the day after we filed, but it took at least 1 1/2 -2 years and no they didn't show up at the 341.

[tobee43]

frazzled, really the issue is going to all be moot when you file.

lets say, worse senario, AMX files suit and wins. they get a judgement and hence you have a judgment. in nj there is no waiting time after the close and discharge of the bk orders are issued, and you can immediately, and this is in respect and considering they have a judgement; or for that matter any other creditor obtains a judgement, you go in file a motion to vacate the judgement. the motion is submitted to the court, of course the judge grants the motion and you are so done with that judgement for ever! just make sure if you have any of then lurking about and you get them vacated that they are in fact removed from the county record, in other words your granted and signed motion to vacate must be recorded.

[FrazzledinNJ]

frazzled, really the issue is going to all be moot when you file.

lets say, worse senario, AMX files suit and wins. they get a judgement and hence you have a judgment. in nj there is no waiting time after the close and discharge of the bk orders are issued, and you can immediately, and this is in respect and considering they have a judgement; or for that matter any other creditor obtains a judgement, you go in file a motion to vacate the judgement. the motion is submitted to the court, of course the judge grants the motion and you are so done with that judgement for ever! just make sure if you have any of then lurking about and you get them vacated that they are in fact removed from the county record, in other words your granted and signed motion to vacate must be recorded.

My fear with being sued is that they will get a judgement and wipe out my bank account before I can file. I realize it's all dischargeable after but if they are able to get to my bank account before I can file BK, I am in huge trouble. I need that money to pay mortgage, utilities and food.

[tobee43]

before that can attach you bank account you will have some time. if you have auto deposit stop it now. we left NO money in the bank none except for we kept an account open for EI to be direct deposit which they can't or couldn't touch, although it never got there for us. first these people are going to have to win the judgement which you can hold off by appearing when you served. this will take a few months it doesn't happen tomorrow. honestly.

first you are served, then you answer the summons that's in nj if i remember at least 30 days you go to court and talk to the judge and tell them i can pay them $10 an am on the verge of bk blah blah. the judge may order an arbitration. means you can buy some time here.

also nj is notorious to just grab without proper notice. you are suppose to be served before they take from you bank account, but i saw it happen over and over where clients would call and say my bank just wiped all my money out of my account and gave it to a creditor and i was never served. it happens all the time there. again just close the account. and, again keep NO money in the bank!

[catleg]

Amex never forgets, once you go bad on an account with them, you won't get another card personally.

I was able to get a corporate card from Amex through my employer even when personally I could not. I was also an additional card on my wife's account, same concept, someone else's credit and risk.

One interesting side effect of this is that Amex doesn't sell their bad accounts to Junk Debt Buyers. They will hold onto it forever in the hopes that someday you'll come to your senses and decide to restore the relationship by paying off the debt.

I never got sued them but I am under the impression that they go after business debtors more aggressively.
In fact my corporate Amex stayed active throughout my personal bankruptcy.

[TXskyblue]

I went 7 months of no payments to AMEX before I filed. They called a lot but never sued me. No one showed at 341.

They will never forget that you BK'd them, though. Never. You can fall off some blacklists after enough years, but never AMEX. That doesn't mean you can't get an AMEX-branded card from someone else, but you'll never have an AMEX card issued by AMEX.

FYI

[FrazzledinNJ]

Thank you everyone for sharing your experiences with me. I really appreciate it and feel a little better about not being able to make a payment this month. It looks like the world won't end after all.
I'm not worried at all about being "black listed" from them because I would never want to have another credit card again! Especially Amex. Once my financial mess is over, HOPEFULLY next spring, I plan on only using cash going forward.

[ValleYum]

Make sure you print out any statement copies you need now before Amex blocks your online access. You just never know if you will need them...

Good luck!

[keepsmiling]

I am in NJ. Amex was my first default too low...3 years ago. They keep offering me settlements, some actually surprisingly low. Been sued by Chase ...made it go away!...and now Advanta but still not Amex. Get Google voice now before the phone calls drive you to drink.