Bankruptcy And American Express
Posted on June 10, 2009 at 4:38 pm
anyone ever have debt with american express and file bankruptcy? i may have to.....
Posted on June 10, 2009 at 4:45 pm
Hi Sheila,
How much is it exactly that you owe with American Express? Are you behind on the payments right now? Also, is this your only debt?
If it is your only debt, I would be hesitant to assume that bankruptcy is the best solution. Let me know what is going on and maybe we can come up with an alternative that can help you resolve your debt without filing bankruptcy.
Posted on June 11, 2009 at 8:34 am
Steven, I owe American Express roughly $12 thousand dollars on two credit cards. I am behind 7 months on both cards at this point, and it is really the only debt I am having trouble staying on top of (I have no problems with rent or expenses like food etc.).
Suggestions?
Posted on June 11, 2009 at 8:54 am
Ok- that isn't too bad at all. I am very confident that you don't really need to file bankruptcy to satisfy the debt. If the accounts are delinquent you should have the opportunity to settle each debt. Are they with collection agencies at this time or is AmEx still trying to collect?
Also, in terms of finances, what is available to you right now? Do you have any money in savings that you could potentially put towards the debts?
Posted on June 15, 2009 at 4:41 pm
Steven I saw you were around the forum again today so I wanted to answer the questions you had for me and hopefully get a response today or tomorrow.
I do have some money available in savings- right aroun $8 K at this time. Obviously I would prefer to use as little of that money as possible to resolve my debts.
The accounts are in fact with collection agencies (I think this just happened- I got the first letters a few weeks ago). One of them is NCO(?) and I can't remember who the other one went to right now I am sorry. Please tell me if I have to get you that info and I can take a look around tonight for the letter they sent me.
What do you think?
Posted on June 16, 2009 at 7:21 am
No problem. Sorry I didn't get back to you last night. NCO handles a lot of AmEx accounts for collection and I am very confident you can settle that account, especially if you have about $8 K in savings.
I would start out, if you are going to do this on your own, offering somewhere between 20-30% to see if that is something they would consider. You can do the same for the other account as well- if it is with a 3rd party I believe you shouldn't have any trouble settling the debt for 30-40% of the current balance.
If you need professional assistance (this may save you more in the end) feel free to fill out a form on DestroyDebt.Com to get matched up with a qualified provider.
Posted on July 30, 2009 at 4:49 pm
Bankruptcy and American Express. That is what this may come down to. I heard that American Express is no longer settling debts, is that true?
Posted on July 30, 2009 at 11:45 pm
Posted on August 6, 2009 at 9:25 am
A lot of people who have questions about bankruptcy and American Express are also wondering if American Express is still settling debts. Right now it looks like they may have shifted their policies towards working with third parties. It seems that American Express has informed their third party collectors to refrain from working with any third party who is trying to settle a debt on behalf of their client.
With that being said, I have also heard from people in the industry that they are in fact still settling with third parties- the third party must be more persistent though. Of course, if this is the case, and you don't want to go through the hassle you can consider settling the debt directly with them.
Posted on August 9, 2009 at 9:24 am
Right- and in terms if bankruptcy and American Express- even if it becomes apparent that they are not settling debts with third parties, that does not mean bankruptcy is the only alternative.
First, you can consider negotiating with American Express directly. A lot of times, creditors who claim to not work with third parties will be more than willing to work with the debtor directly to reach a settlement.
And you can always look into credit counseling as a bankruptcy alternative as well. Depending on how much you owe and how far past due you are, this may or may not be realistic but it's worth looking in to.
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