topic Re: Keeping my new Barclays card through BK in Bankruptcy

Keeping my new Barclays card through BK

Abanomi24 — Mon, 14 Jan 2013 00:51:54 GMT

I can't believe it! I got approved for the NFL Barclays credit card with a $500 CL. My credit is bad and I am filing BK next week. My question is - I know they are probably going to close it after they learn of BK, but can I hold on to this credit card somehow? I literally haven't been approved for any new credit in like 3-4 years after many late payments and a foreclosure. Any advice?

525 FICO/EQ - 548 TU - 500 EX - Over 50 deliquent accounts (mostly medical to 250K)

Re: Keeping my new Barclays card through BK

stormb28 — Mon, 14 Jan 2013 00:57:02 GMT

Are you filing ch. 7? If so, highly unlikely youll be able to keep it.

Re: Keeping my new Barclays card through BK

Abanomi24 — Mon, 14 Jan 2013 01:13:04 GMT

Yes, Chapter 7 next Monday. I guess my question would also be how and when to use it so it does reflect positively upon my credit if it does survive the BK. Is it possible to reach out to them and see if I can keep it or get it back. You know, be proactive - or am I done either way?

Re: Keeping my new Barclays card through BK

MovingForward_2012 — Mon, 14 Jan 2013 01:54:26 GMT

It's possible to keep it but you will have to reaffirm the debt because you have to include all creditors in BK 7 initially but a lot of times when you reaffirm, the creditor still won't reopen the card and if they do, they won't report it to the credit bureaus anymore. It is a sticky situation. I reaffirmed an auto loan and it never reported my on time payments again...ended up surrendering the vehicle.

Re: Keeping my new Barclays card through BK

Abanomi24 — Mon, 14 Jan 2013 10:46:16 GMT

Another question: I have a secured Capital One card with a $200 deposit that I have never used. Can I get my deposit back before/after BK?

Re: Keeping my new Barclays card through BK

MovingForward_2012 — Mon, 14 Jan 2013 13:22:30 GMT

I think you will want to get your deposit before you file. After it is discharged, you can always redeposit your funds for a secured card...you may have to reopen it but that is no big deal. My motto has been don't trust creditors in this situation and only trust an attorney so far as I have learned that the hard way. When the attorney provides a gray answer, research his answer for caveats. Both my attorneys were so nice and SWEET before I filed. After I filed, they wanted nothing else to do with me. When a problem came up that was their fault due to the info they provided, they wanted nothing to do with it. They were more so angry that they couldn't make a quick buck off of me and angry that there was actually "a problem" that arose that they were obligated to fix. I hate bankruptcy attorneys. They treat you like garbage when it is over...like a bad boyfriend. They truly believe throughout the whole process that you are a irresponsible no-gooder and believe that you're the only one to blame but in the beginning they play like they understand as that is their job to make money off of you. So it is best to ask all of your questions before you file and before they go to court on your behalf because afterwards they are mean and won't return your calls. With the last attorney I had to threaten to file a compliant with the BBB just to get a phone call back. Just keep your eyes and ears open at all times.

Re: Keeping my new Barclays card through BK

Comet21 — Mon, 14 Jan 2013 16:46:23 GMT

Your reaffirmed debts can still report on your CR. I reaffirmed my Home & Auto and they both still report on all 3 but I will say getting there I had to make phone calls and send emails to ensure that they would report correctly.

Re: Keeping my new Barclays card through BK

stormb28 — Mon, 14 Jan 2013 17:11:29 GMT

I filed ch 7 in 10/2011, I had 4 cc's:

Orchard Bank Secured ($300)
Capital One ($750)
Discover ($2000)
Bank of America ($1500)

Mind you, all 4 cards had $0 balance. My attorney, who has been helpful, calling me at the 3 month & 6 month mark post bk, and even sent me a xmas card, said the cards would be closed once I filed. He said once my ssn comes up in their data base with a pending BK, cards will be closed. He said to call and see if they will keep them open.

I called, Capone, Discover, & BOA, and they said they would close the cards if BK if their database. So I just closed them out. Orchard Bank said they would keep the card open, so I left the card open. Low & behold, the day I file, I go to use the Orchard card, its declined. It is of my belief they lied to me to keep my deposit. Since they closed my account, I forfeited my $300 deposit. As always, YMMV, but id close all cards ASAP.

Re: Keeping my new Barclays card through BK

MovingForward_2012 — Mon, 14 Jan 2013 17:44:04 GMT

+1 good advice and great story to back it up.

Re: Keeping my new Barclays card through BK

Abanomi24 — Mon, 14 Jan 2013 19:26:05 GMT

Thank you for the advice on my secured card and the others. I guess I will just close them and wait for the new offers post-BK. What kind of offers would you normally get for new cards and how soon/when in the BK process?

Re: Keeping my new Barclays card through BK

stormb28 — Mon, 14 Jan 2013 19:38:37 GMT

Before you close them, tell them your situation, they MIGHT keep them open, just ask.

A week after my discharge, I got the CapOne secured cc, $49 for $200 CL. That was 10/11, in 6/12 I got the CapOne cash rewards card. I can tell you, Boa, Chase, Wells Fargo, AmEx, and to some degree Discover are all off limits. BoA & Wells Fargo have secured cards, however, I think you need to be a year out from BK and both cards report as secured. Chase and Amex wont even talk to you. Barclays approved me for a $500 limit last month, so theyre an option. Discover is hit or miss, they denied me.

Keep in mind, I only have a BK on my report. No other derogs, I had to file due to a $25k cosigned car that was repoed. The judgement isnt on my report anymore, nor is the repo. If you can, avoid First Premier and like cards with absurd fees and costs.

Re: Keeping my new Barclays card through BK

MovingForward_2012 — Mon, 14 Jan 2013 20:50:42 GMT

Yep Chase is hard. I barely got approved for the Chase Freedom after reconsideration that almost took 3 weeks. My BK is 9 yrs, 4 mos old and close to being deleted and the reps were still barking over it. During the recon process I received a denial to due bankruptcy letter in the mail and a week later the card was approved. Talk about a nerve racking experience. So yes, Chase and other prime creditors won't even talk to you and barely talk when your BK gets as old as mines. I lived on cash only for many years after BK.

Re: Keeping my new Barclays card through BK

hrguy — Thu, 17 Jan 2013 05:21:36 GMT

I'd close the card since they are one of the ONLY prime banks that will lend to BK folks, and I mean almost immediately to 6 months post discharge.

I'd then reapply 6 months post discharge. You probably will get the card back then, since your scores will be higher than they are now. But I would advise against having them tied up in your BK. In-fact, I would close it, wait for it to report closed and then file if you can hold off.

Re: Keeping my new Barclays card through BK

StartingOver10 — Thu, 17 Jan 2013 23:40:56 GMT

hrguy wrote:
I'd close the card since they are one of the ONLY prime banks that will lend to BK folks, and I mean almost immediately to 6 months post discharge.

I'd then reapply 6 months post discharge. You probably will get the card back then, since your scores will be higher than they are now. But I would advise against having them tied up in your BK. In-fact, I would close it, wait for it to report closed and then file if you can hold off.

^^^Sound advice.

Re: Keeping my new Barclays card through BK

Abanomi24 — Thu, 21 Mar 2013 05:37:22 GMT

Okay, so an update. Three weeks out of my 341 and I got another alert that MyFCIO went to 664 and all of my accounts (6) show IIB or paid in full. I still have my Barclay's card with a 500 CL open and Capital One closed my secured card. I called them and they basically told me to get lost and they would send me my deposit. 521 to 664!