Pre-Bankruptcy - American Express

[blackjack88]

Hi, new to the forum glad you are here.

I have large amount of unsecured debts (credits cards) and some medical bills. I am disabled and may have to file bankruptcy. I have only a small amount of savings left (have been unable to work because of surgery and recovery).

I have to go to out of state for some major restorative surgery on my spine. Will be making flight arrangements and may have 4-5 week stayover on the east coast because of the surgery. I got some travelers checks today from my savings account, and of course, they are American Express travelers checks.

I didn't think of it until this eve but one of my creditors is American Express.
Is there any way when they issue the checks at my bank, that it is posted (for loss-stolen references) that American Express could somehow take claim on the checks before I even use them? I need this money for the long overhaul and recovery time and my flight back home.

(Background info: American Express account has been sent to a collection agency and they have been attempting to negotiate. Per instructions by an atty they may keep it in collections for a while, as my other creditors have done, but if they file suit I will have to file for bankruptcy.)

I know I was careful to not have any of my bank accounts in a bank that is connected to the credit card companies.

I didn't know if there was anyway those checks (my funds with those checks) is in jeopardy. It is all I have.

Appreciate an answer, don't know if I can sleep tonight knowing I have AMERICAN EXPRESS travel checks for my trip next month.

[blackjack88]

Can Anyone Help Me On This???

Was hoping to get an answer re: travelers checks see my post from yesterday.

Appreciate any info you can offer....I am concerned and worried that American Express could connect to these...it is all I have for my trip to have major surgery next month!

[HHM]

I don't quite understand what your asking, and I am sure its my fault. What checks are you referring too.

Why would you be issueing Amex travelors checks from your Savings Account?

[blackjack88]

Amer Express Travelers Checks

The travelers checks are for my trip to NY and being away from home for diagnostic, treatment, surgery, recovery (which could be more than 5 weeks), it was my only option, I did not want to be carrying that much cash for that length of stay.

Money was withdrawn from small amount of savings I have left now being pre-surgery and facing not a good prognosis.

You're asking why???? My question focuses on having the travelers checks with American Express and one of my creditors being Amer Express -- that is the concern and was hoping someone could answer here.... suppose it means a call to my atty.

[PaKettle]

As I understand it, you have not filed yet, but you have quit making payments on American Express's card, as well as others, and you wonder if they might cancel the checks you bought, in light of the fact that you owe them money? Is that the gist of it?

I am pretty sure that they could not do that, but I'm no expert. I just think that the travelers checks bought with CASH from YOUR savings account, are now your's and you can do with them as you please. Had you bought them with a cash advance from Amex it might be more of an issue, but still I don't think they could ever cancel the cheques just because they are owed money on the credit card end.

I suppose - and again I am only guessing - American Express credit card company could theoretically find out you used this cash for your trip while not paying them their monthly payment. I had a similar question re using my Amex Travelers Checks to pay my attorney after I have stopped paying bills. I guess the bottom line is that they are like cash, they are YOUR cash, now, and you can do what you want with them, and Amex cannot cancel them because you now own them, they are now your money.

As to whether Amex credit card might find out you used the checks for a trip when you were claiming not to have money to pay them, I don't really know and that was my question as well. But after thinking about it some I don't think it really matters, especially in your case, when the trip is a medical expense. I don't think there is a problem here, you're just being paranoid like I was, too, about using the cheques I found in my shoebox to pay my attorney for the bankruptcy.

However, I do wonder why you didn't just transfer money to your checking account and use a debit card from that for your trip and payments, etc...? But I assume you have your reasons, and you need not explain them...

A call to your attorney probably wouldn't hurt, since you're paying him for legal advice. Shouldn't take long to answer that question; as long as you're not calling him all the time with questions, I would think a question to him wouldn't hurt anything and might make you feel better to get the answer from him.

[JRScott]

I don't think you not paying on your AMEX card will affect the traveler's checks. The Checks are bought using cash and then are secured by AMEX. I suppose the trouble could arise if you lost the checks and then while trying to get them back AMEX realized you owed them so much money.

I really don't have much experience in this though.

[JollyGG]

Ummm. I'm guessing no one noticed that the original thread was started two and a half years ago. The original poster is probably long gone.

[PaKettle]

Ummm. I'm guessing no one noticed that the original thread was started two and a half years ago. The original poster is probably long gone.

Ha!
No I did NOT notice that! Oh well... Thanks for pointing that out.