confusing credit card question please help

[nichole04]

We are about to file ch. 7 and recently discovered that my husband's company credit card where he works is tied to his social security number. His employer pays the bill for the credit card and it isn't reported on my husband's credit report but my question is this: After we file bk will the business credit card notify his employer of the bk and/or will they close his business credit card account?

[LookingAhead]

I am not sure. I have a Sams card for my daughter's preschool as my 'job' for them (it's a co-op) is to buy the supplies so they got me a card with my name on it to get into Sams and it's also a charge card for there and Wal Mart.
I didn't think to ask the 1st lawyer, 2nd lawyer said yes, it would be reported, the other 2 said no as I am just an authorized user (I didn't use that term with the 2nd lawyer - not sure if they would have helped him understand it better or not). It's a business card with the preschool name and mine on it. I never see the bill either. I am hoping the last two are correct and this doesn't cause problems or allow them to find out that I am filing (her teacher is best friends and cousins with my supervisor at work, so I don't want word to travel there either). I am not sure if my card has my ss# on it or not. I haven't checked my credit score yet to see if that card is listed on it either - that may make a difference too? One of the lawyers said that the school may be notified by letter about the bk, as there is always a chance something could go different with one random case out there, but he didn't think there would be any problems with it.

[nichole04]

Thanks for the reply looking ahead. That is what I was afraid of. I know my husband's social security number is tied to his company cc b/c we have a personal boa cc and when we signed up for online access this company card popped up with it. The company card is not being reported on his credit report but I think business credit cards are reported on business credit reports. Is there any way my husband can have his employer remove his social security number from the credit card before we file bk? My husband doesn't want his employer to find out we are filing bk b/c he is in a top management position and deals with financial stuff. The reason we are filing bk is b/c I had a small business go belly up and we just have too much unsecured debt and 2 more years on our business lease left. Is there anything we can do?

[BKDefender]

I'm sorry if this scares you, but if your husband's position deals with certain fiduciary responsibilities, especially if it requires a license or administrative/regulatory approval, there is a possibility that a bankruptcy can affect his employment. If that is not the case, then if his employer fires him because he filed bankruptcy then they've violated federal bankruptcy law.

Take a look at 11 U.S.C. 525(b)
No private employer may terminate the employment of,
or discriminate with respect to employment against, an
individual who is or has been a debtor under this title,
a debtor or bankrupt under the Bankruptcy Act, or an
individual associated with such debtor or bankrupt

--William

[Flamingo]

Does your husband have an employment contract with the company he works for? In an executive position? Have him check his employment contract if he has one or the company policies and employment handbook. Many companies for higher up positions have clauses in contracts for their executives that if that person files bankruptcy, they are to notify the company immediately. Not to do so can result in terminated employment.

When your husband was hired and given an application for the AMEX card, did he supply his social security number or was the card provided for him to use by his company and guaranteed by the company? If his SS was used and his name is on the card (will say his name, company name under his name and "Corporate", it will affect his credit and could come to the attention of his employer.

[Llelxon]

I work for a larger company and we have company issued AMEX corporate cards. When they are issued it is based on your credit, so they could be canceled based on your credit. My wife had/has a personal AMEX, which we didn't owe any money on and so did not include it in our BK. So, far I have not had issues with AMEX at 90+ days after filing, don't know if I will on not.

I made an anonymous call to AMEX to inquire and they said maybe, maybe not if I give them my account number they would help me get in contact with our account manager. Obviously I said "no thanks" and went on my way.

I am hoping by not BKing anything with AMEX that maybe they will let my corporate card live. If your husbands work card is through a company you are including in your Bk, I would be doubtful that it will make it.

[DebtHater]

Take a look at 11 U.S.C. 525(b)
No private employer may terminate the employment of,
or discriminate with respect to employment against, an
individual who is or has been a debtor under this title,
a debtor or bankrupt under the Bankruptcy Act, or an
individual associated with such debtor or bankrupt

--William

Just out of curiosity, is there any statute that applies to public or government employees?

[nichole04]

The card is in the company's name but has his name on it as well. He said that they had him sign for the card when he got it. The company is responsible for paying the bill. His position is sales/marketing manger and he has to have the card to pay for things like taking clients out to dinner, gas for his company car, etc. It isn't reported on my husband's credit report. My husband said he can't do his job if boa or amx cancel his business cards. Could we maybe call the card companies direct and explain the situation so they won't cut off his cards and so his employer won't find out about the bk?

[Llelxon]

The card is in the company's name but has his name on it as well. He said that they had him sign for the card when he got it. The company is responsible for paying the bill. His position is sales/marketing manger and he has to have the card to pay for things like taking clients out to dinner, gas for his company car, etc. It isn't reported on my husband's credit report. My husband said he can't do his job if boa or amx cancel his business cards. Could we maybe call the card companies direct and explain the situation so they won't cut off his cards and so his employer won't find out about the bk?

My corporate card is the same way, has both mine and companies names and does not show on my credit report. If your husband works for a large company he should consider talking to his manager or hr as he probably wasn't the first to file. Other option is to use own cards and reimbursement.

[BKDefender]

Just out of curiosity, is there any statute that applies to public or government employees?

11 USC 525(a) addresses governmental employers. The answer is still Yes - there is a prohibition from adverse actions by the government against employees 'solely' because of their filing bankruptcy.

--William

[nichole04]

my husband said that he had to give his social security number. Is there not a way for him to have a company card without tying it to his social security number? Do you think he should have his employer close these accounts before we file so they won't get a notice? Please see my other questions above. Any info. and advice would be greatly appreciated.

[backtoschool]

The credit card company will most likely not inform your husband's employer of your bankruptcy, but they may cancel the card. Most business AMEX cards are based on personal credit scores, even though the company pays.

Also, if you bked a personal AMEX in your bankruptcy, then you will most likely lose your business amex card. Amex keeps a blacklist of all people who charge off balances or bk them.

[nichole04]

We DO have a personal amx card and a personal boa card that we are filing bk on. Should we call these 2 cc companies and explain the situation so they won't cut off his credit and/or notify his employer or should we try to get his employer to close these accounts prior to bk? We really don't want his employer to find out about our bk b/c he is in a top management position and my husband is afraid he will be looked down on by the many people he is over and will cause his boss to not trust his judgement as much. This is such a nightmare!

[nichole04]

help with credit card

Does anyone have any advice as to what to do on the previous question? Should my husband have the credit card cancelled and have his employer give him a new one that isn't tied to his social security # or should he try to contact these credit card companies and explain the situation? Thanks.

[Llelxon]

Well if you are going to BK your personal AMEX, I am sure they will cancel his business AMEX. I would have him call HR and talk about the situation, as I said in my previous post there has surely been other people file bankruptcy in the company. If the company has any size to it they have dealt with this situation and can probably sign a form indicating they will pay it if he doesn't. In my company we had a manager who had some issues with billing and his AMEX and it wound up going overdue and he had to have his manager sign a form saying the company would pay it if the individual did not.

I doubt the employees working for him would find out, his manager probably will though. I think I would talk to them versus calling AMEX and having them cancel it and then having to be on the defensive explaining the situation. It always looks better to be up front.