Legal Question in Bankruptcy in Minnesota

business credit card

My husband and I filed for chapter 7, and we kept out my husbands corporate credit card which he has to use for his company expenses. He is reimbursed each time he submits his expense report. Our lawyer told us that the credit card company may find out about it through credit checks they run periodically. At that point they could cancel the account. Do you know how often the run checks and the liklihood. It does appear they checked it in December, as we needed to review our credit report as part of our bankruptcy. If my husband looses the card, he will loose his job. His occupation is in the financial industry, and they woulod not be understanding.


Asked on 3/20/08, 4:01 pm

1 Answer from Attorneys
David Kelly-952-544-6356 Kelly Law Office

Re: business credit card

All I know about this issue is first of all, clients of mine have had the experience of a credit card company which was not listed, because nothing was owing on that account, still finding out and closing the account.

Secondly, I have heard a lot of rumors about this stuff from other bankruptcy lawyers. What I am hearing is that it is not a matter of the company running a check. There's more to it than that. Most if not all of these companies subscribe to a service which is supposed to inform them when someone who has an account with them has filed bankruptcy.

So the bank or credit card company doesn't really check anything. Some computer geek outfit has a service to which the creditor subscribes that just presents them with the info. I suppose the geeks are running some sort of a check; but if they are, it must be going on daily, not just every once in a while.

Long story short. If you have filed the bankruptcy, you should be finding out soon if one of these services has picked up the info and reported it. If weeks or months have gone by and nothing has happened, it probably isn't going to.

Good luck. Once again, let me say I don't really know anything - but I have heard lots, upon which I base the above comments.

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Answered on 3/21/08, 3:10 pm


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