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what about zero balance ccs when listing debts for bk


jstupid
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out of my 12 ccs only 7 have any balance, which will be listed for BK, what about those accts with no balance at all?

is is likely they-the zero balance ones, will be closed by the companies when they pull CR as they occasionally do and see the BK,

am AU on mothers Gold AMEX, should I close my card, will it impact her Gold Amex?

thank you very much

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I'd remove yourself as an AU just to make it cleaner.

As far as the others with $0 balance, you risk having them note as "closed by grantor" if they see a BK. Or you may get lucky and the card will help you rebuild faster with the longer history after your BK discharges. I say 50/50 shot.

In my BK, I maxed all my credit cards (cash advances), then waited 180 days, then filed, so I didn't have this problem. AmEx actually tried to fight my BK7 due to these massive cash withdrawals, but they lost (How, I don't know. My lawyer handled it all).

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A lot depends on the creditor. I had several CC's that had not been used in over a year, like Dillards and JC Penney's, zero balances, and those were closed automatically. I also had a Sears card, a BP and a Shell card.. all with zero balances, and the Sears account I've had for almost 30 years (and it has a 5K credit limit !) As it turns out, at the time, all 3 of these were backed by Citibank - and all 3 of them remained open and usable. I've been using the gas cards every month and paying off, and use the Sears card for my auto club and a few small purchases to keep it active.

I got lucky, Citi didn't get burned and they were lenient IMO, and I'm glad for that. Since my BK, the BP card was sold to Chase, had that been the case when I filed, it probably would have been closed since I BK'd on Chase.

As mentioned, its sort of a crap shoot on whether or not they'll be closed on you.

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  • 2 weeks later...

I had a few zero balance OPEN cards that were closed by the credit grantor after BK 7, and also now show on my CR as IIB, zero balance. When I contacted my lawyer, he said that even though they were not on the schedule, and I did not owe a balance, they were automatically included in the BK. From what i gather, they are now impacting my scores as IIB, even though I had a PERFECT history with them and they did not have to write off a dime due to my BK.

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