Many people find their credit card canceled even though they had a zero balance and the credit card was not included in their bankruptcy schedule.
Imagine six months after your bankruptcy has been discharged. You've turned your financial situation around and there is no more worrying how you are going to pay your bills. Everything is on the up and up; you're budgeting well and have a little money to spend, so you decide to pick up the tab for a meal with some of your family, friends, or worse, your boss. Out of nowhere your credit card is denied. Your credit card has been canceled without warning by the creditor.
You wonder how this could be, because this credit card wasn't even included in the bankruptcy. The credit card had a zero balance on it so you weren't required to list it on your bankruptcy schedule. What happens is your creditor caught wind of your bankruptcy and immediately canceled you in order to be protected. With Chapter 13 cases some creditors will cancel you on accounts that you paid off.
The credit bureaus actually offer a monthly service to the creditors. The service goes by different names for each bureau. The Equifax Bankruptcy Navigation Index, Experian Bankruptcy Score, and TransRisk Bankruptcy score are the three names. The bureaus offer the creditors the social security numbers of all the people who filed for bankruptcy that month. The creditors then compare the people with their debtors and cancel the cards of all of the people that filed bankruptcy.
A similarly related issue is that some people find that their credit cards are listed as "discharged under bankruptcy" on their credit reports even though they worked hard to pay them off. They felt that keeping a remaining card in good standing would help them bounce back from their bankruptcy. Then the card ends up listed just like the others.
If this happens to you, contact the applicable credit report agency and let them know that there is a mistake. Also, if you find out that your card was canceled due to your creditor finding out about your bankruptcy, you should write the company to ask them to reopen your account.
A good place to start with this is to locate the name of the Director of Consumer Affairs for the company. Write them a letter explaining that you paid off your credit card debt with them, in full, and ask that they reopen your account with a small balance. If the company sees that they are not taking a lot of risk with you, and they see that you stayed in good standing, it is very possible that they will reopen your account.
In conclusion, it is important to make sure to review your credit reports after your bankruptcy. Also, make sure to check your remaining credit cards periodically to make sure that they haven't been canceled. If you have any specific questions, a bankruptcy attorney can help you. Make sure to contact a Dallas-Fort Worth bankruptcy attorney today.