is it possible to keep a card after the bankruptcy?

[tanya0525]

My Macy's, that survived BK, went from $100 to $2000 credit limit.

[cupcake]

^I thought the same thing. When I opened the notification I got in the mail letting me know that the Macy's VISA was being converted to an AMEX, I said "Oh, $hit." Then, to my surprise, they sent the card in the mail. I guess I will have to wait and see; I haven't used the card yet. However, I question whether it is an actual AMEX card. I checked my CR this month and the account is listed as "AMEXDSNB" which means it is still a Department Stores National Bank card, right? So, maybe it's not issued by AMEX? In that case, it may stay open.

[backtoschool]

Expect the AMEX to be closed soon. No matter who the issuer is and how small of a transaction.

I would have to agree with TheExpert that AMEX cards typically do not survive bk. AMEX is notoriously bk unfriendly. But since AMEX is not the issuer, and you have had the card for a bit as an AMEX it may survive.

[TheExpert]

Expect the AMEX to be closed soon. No matter who the issuer is and how small of a transaction.

[backtoschool]

I use them for small purchases (under $50) just so they are being used every few months or so. If I had a large purchase to make I would pay cash anyway.

I think that is perfect, and that they should survive in that scenario.

[cupcake]

Store cards often survive, especially if you have had a long history with them. They survive because they typically do not subscribe to the services offered by the credit bureaus that inform them each month of new bankruptcies, etc.

If you try to use the cards for a large purchase, do not be surprised if they close the account.

I use them for small purchases (under $50) just so they are being used every few months or so. If I had a large purchase to make I would pay cash anyway.

[backtoschool]

Quick update...

All of the zero balance cards that survived my CH7 discharge in 7/2009 are still open. And, the Macy's Visa is now a Macy's AmEx; I thought for sure I'd lose that account when AmEx took over. The strange thing is that I also had a zero balance Neiman Marcus store card at the time of filing which is still reporting as being open and paying as agreed. I called NM to see if the account is still open and they have absolutely no record of my account ever existing, even though they are reporting. Odd.

I know that it is entirely possible that any of these accounts could be closed at any time but so far I've had no problems.

Store cards often survive, especially if you have had a long history with them. They survive because they typically do not subscribe to the services offered by the credit bureaus that inform them each month of new bankruptcies, etc.

If you try to use the cards for a large purchase, do not be surprised if they close the account.

[cupcake]

Quick update...

All of the zero balance cards that survived my CH7 discharge in 7/2009 are still open. And, the Macy's Visa is now a Macy's AmEx; I thought for sure I'd lose that account when AmEx took over. The strange thing is that I also had a zero balance Neiman Marcus store card at the time of filing which is still reporting as being open and paying as agreed. I called NM to see if the account is still open and they have absolutely no record of my account ever existing, even though they are reporting. Odd.

I know that it is entirely possible that any of these accounts could be closed at any time but so far I've had no problems.

[Flamingo]

I have several credit cards...but I only have balances on 4 of them which will be in my bankruptcy when I file. Is it possible to keep the cards I don't owe a balance to? Some of them are the same bank as ones I will be including in ch 7...but HSBC for example, I do not owe them anything and I have a zero balance on that card. Anyone know if they will close the account? It has a small limit and no annual fee, which is why I would prefer to keep it just for the credit history to help re-establish after it is all said and done. Any cards in particular that any of you were able to hang on to? I searched but haven't been able to find any clear answers on this...

There are hundreds of postings in this forum regarding credit cards surviving a bankruptcy filing.. Briefly, if a zero balance card survives after your discharge, the chances of it getting closed out over the next several months are very high; in fact, expect it to get closed and it can be closed at any time. There are some cards that do survive but there is absolutely no guarantee.

[Nicollette]

I had five accounts with zero balances at the time of filing. A Macy's Visa, Macy's store account, QVC card, Neiman Marcus and Nordstrom. The Macy's Visa, Macy's store account and the QVC card all survived, remain open and I use them somewhat regularly. I should note, however, that the limits on all three were reduced. The Macy's accounts were reduced to $500 each and the QVC account was reduced to $100. Since my discharge last July, the Macy's account renewed and I received a new card. Also, my limits on the two Macy's account have been raised to $1,000 each.

YMMV...

My cousin has a Macy's store account card and it survived her Ch 13.

[hillaryg]

we had 1 card with 0 balance we never used. no need to report it. bk discharged 2 mo ago and we are using it for small purchases. who knows if/when they cancel

[Amy26]

While I didn't get to keep any of my cards that had a zero balance after my bk... I was able to reopen an account. I applied for a Lane Bryant credit card soon after my discharge and they sent me a letter saying thank you for applying, we see that you previously had an account with us and we are reopening the account. That was with Spirit of America bank at the time... they have since been bought by WFNNB who can't stand me now ...if I apply for anything that is backed by WFNNB they don't even check my credit and deny me for only 1 reason "Bankruptcy". So, I guess I snuck under their radar with the lane bryant card. They just approved a limit increase... so, hopefully they won't close my card.

[ItsJustMe]

I had two cards without a balance. The GAP card was closed after filing (before discharge), the USBank account lowered the limit (from $8K to $300) but remains open.

[cupcake]

I had five accounts with zero balances at the time of filing. A Macy's Visa, Macy's store account, QVC card, Neiman Marcus and Nordstrom. The Macy's Visa, Macy's store account and the QVC card all survived, remain open and I use them somewhat regularly. I should note, however, that the limits on all three were reduced. The Macy's accounts were reduced to $500 each and the QVC account was reduced to $100. Since my discharge last July, the Macy's account renewed and I received a new card. Also, my limits on the two Macy's account have been raised to $1,000 each.

YMMV...

[frogger]

At our 341, the trustee specifically told each and every person there to destroy all credit cards.