CCs with $0 Balances

[Peeps]

Hi All,

I've been scouring the forum's posts for a while now and had formed an understanding that zero-balance credit cards are very likely to be closed by creditors once a person files bankruptcy.

But when I talked with a lawyer a few weeks ago, he mentioned something a bit different. He said in 20+ years of handling bankruptcies, he has only seen 2 clients have their zero-balance credit cards yanked.

Personally, I'm ready to be plastic-free after this BK so I'm not asking because I'm dying to keep my cards. But this little redhead is curious and, well, you know how that goes...

What have people on the forum experienced with cards that were at zero-balances at the time of BK? Were they yanked? Did they stay open? If so, did rates adjust? Did limits change? Maybe some banks are more likely to keep accounts open than other banks?

[chicagoannie]

I have 2 little ones that have been at zero for 2 years. Have not checked to see if they have been shut down. Rec'd no notifications to this effect (yet!)

[panda]

I filed 11/8 and the 341 was 12/14. I just had discover, JC Penney, and Sears master card closed this last week. The two last ones are on my report as closed by grantor with 0 balance, account in good standing, but Discover, even with the 0 balance put it under included in bankruptcy. I am going to dispute the Discover after discharge as it was not included in the bankruptcy specifically because my lawyer said not to include the 0 balance cards. So my experience is all of our cards, even those with 0 balances have been closed, and I had my Sears card since 1983.

My husband has a credit monitor from equifax, so we know every time something changes.

[DebtEnder]

My wife has a store credit card that had a zero balance when we filed. It sat for over a year but got some store coupons with bonus if you used the card, so we did and it worked. Still have online access and everything, paid the balance off, accessed statements, etc etc.

[2011]

certain creditors will not close if zero bal... Macys & Jared's jewelers to name a few... Some will close regardless... Amex being one...

[help1234]

We had 2 that on the credit reports appeared to have survived, so I tried to make small purchases on each one to see... inquiring minds want to know. Both were declined then immediately closed with no notice from the company. These where store cards. There seems to be no standard IMO as to who will do what.

[tobee43]

Hi All,

I've been scouring the forum's posts for a while now and had formed an understanding that zero-balance credit cards are very likely to be closed by creditors once a person files bankruptcy.

But when I talked with a lawyer a few weeks ago, he mentioned something a bit different. He said in 20+ years of handling bankruptcies, he has only seen 2 clients have their zero-balance credit cards yanked.

Personally, I'm ready to be plastic-free after this BK so I'm not asking because I'm dying to keep my cards. But this little redhead is curious and, well, you know how that goes...

What have people on the forum experienced with cards that were at zero-balances at the time of BK? Were they yanked? Did they stay open? If so, did rates adjust? Did limits change? Maybe some banks are more likely to keep accounts open than other banks?

peeps .....i can only tell you are experience...we had at least 6 cards with zero balances....ALL were closed by the creditors...everyone of them.

our atty said the opposite...said the creditor would close them asap...because i insisted NOT to list the zero balance ones on our petition...we did not LIST them at all...but they ALL closed the accounts...

i have also heard of a few situation where the companies didn't close the accounts...so it's the luck of the draw i think at this point.

[IBroke]

I filed 9/24 and had 2 cards at $0 balance. As of today, BOTH are still open and carry a balance again. According to my credit-report, they BOTH checked my credit shortly after the BK was put on file so it seems they don't mind.

[Amy26]

Same with me tobee, all my zero balance cards were closed. I was actually really pissed off because I had a nice card with bank of america and it lad like a 10k limit or something and they actually sent me a letter saying "hi there, we will be allowing you to keep your credit card post bk but we are lowering the limit" (I actually made a thread about it here when that happened and posted the letter!) and I was really happy. Then I tried to use the card and it was denied. When I called them they said that the card was closed because of my bankruptcy. And I said but wait a minute you guys sent me a letter saying it would stay open. And the guy put me on hold for like 15 minutes and then when he came back he said oh yea please ignore that letter we just cut you another one that states we're closing it because of your bankruptcy.

That one made me mad! But, I personally didn't have any cards that survived BK. The only odd thing I found was that I app'd for a Lane Bryant card after I was discharged and I found out afterward that WFNNB is not BK friendly but they sent me a letter in the mail with a store card attached to it saying congratulations we have reopened your former account that was in good standing. So, while they closed the account when they found out about my bankruptcy they reopened it after I app'd again....

[tobee43]

Same with me tobee, all my zero balance cards were closed. I was actually really pissed off because I had a nice card with bank of america and it lad like a 10k limit or something and they actually sent me a letter saying "hi there, we will be allowing you to keep your credit card post bk but we are lowering the limit" (I actually made a thread about it here when that happened and posted the letter!) and I was really happy. Then I tried to use the card and it was denied. When I called them they said that the card was closed because of my bankruptcy. And I said but wait a minute you guys sent me a letter saying it would stay open. And the guy put me on hold for like 15 minutes and then when he came back he said oh yea please ignore that letter we just cut you another one that states we're closing it because of your bankruptcy.

That one made me mad! But, I personally didn't have any cards that survived BK. The only odd thing I found was that I app'd for a Lane Bryant card after I was discharged and I found out afterward that WFNNB is not BK friendly but they sent me a letter in the mail with a store card attached to it saying congratulations we have reopened your former account that was in good standing. So, while they closed the account when they found out about my bankruptcy they reopened it after I app'd again....

amy...it's enough to spin a head all the way around twice!! LOL!!!

actually the one i REALLY wanted to keep was walmart...because it has food, tires, gas...and general "living" stuffs....but they closed it right down...even tho i was never late and it was always paid in full. we haven't re-applied, but i'm not going to worry about it anymore...at this point these places are at SOME point i hope....going to have to BEG people to come back some way or another...you'd think????...or maybe i'm just hoping...

[oregonpilot]

For me..
I had 2 with zero balances......They are AH GONE!!!! closed---kaput---

[cupcake]

When I filed, I had a few zero balance cards most of which were store cards. If I remember correctly, the cards were from Neiman Marcus, Nordstrom, QVC and Macy's (which was actually two accounts: a Visa and a revolving store card):

Nordstrom canceled my card and closed my account;
Neiman Marcus closed my account for use but it is still reporting as open and current;
QVC kept my account open and it is still active but my limit was lowered to $100; and
Macy's kept both accounts open but initially lowered both limits to $500 each. Since then, both limits have been increased to $1,000 each and the Visa is now an AmEx. I use this account every few months or so just to keep it active and open.

I don't know if the QVC and Macy's accounts will remain open indefinitely, I can only wait and see what happens in the future. I think the Macy's accounts are especially promising seeing as though my limits have been increased and it has been through a transfer.

Good luck!

[ready2puke]

certain creditors will not close if zero bal... Macys & Jared's jewelers to name a few... Some will close regardless... Amex being one...

Hi everyone! Its been awhile since I posted...more later.. I sure hope Macys stays open thats the only one I care about..you get more % off during the specials and I pay the card off before I even leave the counter...Hope your right

[SPalin]

I had 4 cards with zero balances when I files, two closed after I files Men's Warehouse and Home Depot (both GE Capital), but at lease they reported correctly! My Bloomingdales and Nordstrom remained open a year later as I used them last month and paid them off this month, so sometimes things slip through. I even called Bloomingdales in November to see if the account was closed as when I went on-line it didn't show a credit line, it was open and a CL increase, too!

[IBroke]

One of my two open accounts already sent me a new card since the old one expires this month..