Legal Question in Bankruptcy in California

Re: chapter 7 bankruptcy

Both of the answers given before are correct. Let go of the card and DO NOT pay it or any card off to try to save it. You can get a secured card later and may even get offers from other credit card companies. It used to be normal for people to get literally dozens of card offers after filing. Now that has changed due to the economy. However there may still be a few that offer it. What they did in the past is no longer a basis to guess their future actions.

Be aware that lots of people filing bankruptcy now days are getting into real problems because of the massive changes in the bankruptcy laws in 2005. Some people cannot use the California Exemptions to protect what they own even though they live here!(Crazy isn't it) Thank you to our Credit industry bought and paid for Congress for that and other stupid anti-consumer laws. Paralegals are poorly equipped to give you legal advice. There is a reason they are prohibited from doing so as the advice is always wrong on many issues.

I am a State Bar of California Certified Bankruptcy Law Specialist with 30+ years experience doing nothing but bankruptcy law. My firm give a free 1 hour (often more) initial consultation with no pressure. You can contact us at 4855444 to get HONEST answers to your questions before you file.

Re: chapter 7 bankruptcy

Buried deep in one of the many disclosures you received from Amex is a clause that states that the filing of bankruptcy cancels the account. Even if you don't owe them anything when you file, they pull a credit report regularly, and will be so kind as to cancel it for you. I've heard this from a number of bankruptcy debtors - well after they receive their discharge, they get a cancellation notice from Amex. Sorry - its not real likely, and particularly if you have a balance on the Amex card - you MUST list it and discharge it, or it will cause you real problems down the road, and you could be denied a discharge completely if the omission is discovered prior to entry of the discharge.

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Re: chapter 7 bankruptcy

If you owe money to Amex when you file for bankrutpcy, you must list it in your bankruptcy papers and they will almost certainly cancel your account. Even if the don't list Amex, they will find out about your bankruptcy the next time they run your credit report. In other words, it would be almost impossible for you to keep the Amex card.

Many of my clients have reported the cancellation of cards with zero balances that were not listed in a bankruptcy petition. You might considered getting a secured credit card after you file for bankruptcy to begin rebuilding your credit.