Barclays Card Policy on IIB

Anonymous · ‎08-27-2014

Hi, I'm new to the forums but I've been lurking for some time now. Hoping someone can shed some light on this.

I had a Barclays card that had a zero balance at the time of my Chapter 7 filing. They weren't included in my bankruptcy however they are showing up on my credit report as IIB (they were not included on the petition). I tried to dispute this but they are telling me that it's their policy that anytime there's a bankruptcy, they close the account and include it in bankruptcy, hence the way it's reporting. I'm waiting to hear from my atty to see if this is legal. But in the meantime, anyone know??

Scupra · ‎08-27-2014

@Anonymous wrote:
Hi, I'm new to the forums but I've been lurking for some time now. Hoping someone can shed some light on this.

I had a Barclays card that had a zero balance at the time of my Chapter 7 filing. They weren't included in my bankruptcy however they are showing up on my credit report as IIB (they were not included on the petition). I tried to dispute this but they are telling me that it's their policy that anytime there's a bankruptcy, they close the account and include it in bankruptcy, hence the way it's reporting. I'm waiting to hear from my atty to see if this is legal. But in the meantime, anyone know??

They are reporting correctly..

Capital One did the same thing to a card I left open. In a no asset chapter 7 you are able to go back and add things so they are protecting themselves. Maybe you have a good shot at getting another Barclay card since they were not IIBK

Anonymous · ‎08-27-2014

Darn, was hoping it was incorrect. I paid that card off too, took the chance that it may stay open. I burned them with a business card (Juniper) so that was probably bad thinking on my part. Oh well. Thanks for the explanation!

Scupra · ‎08-27-2014

@Anonymous wrote:
Darn, was hoping it was incorrect. I paid that card off too, took the chance that it may stay open. I burned them with a business card (Juniper) so that was probably bad thinking on my part. Oh well. Thanks for the explanation!

No worries! Best of luck

StartingOver10 · ‎08-28-2014

It is one of the reasons I suggest closing zero balance credit card accounts prior to filing BK. It doesn't hurt your credit if you are filing BK to close a zero balance account. It does make it much less likely to get the IIB label because it is already closed.

It also makes it easier to open another account by the same creditor at some point after your discharge.

Naturally you can't close it if there is a balance. And you don't want to do anything with preferential payments to jepordize your Bk. But most of us have several cards with zero balances going into a Bk so it wouldn't be an issue to close those in advance of filing.

Anonymous · ‎08-28-2014

Same thing happened to me and the card company closed all my cards even though not all were included.

0REDSOX7 · ‎08-28-2014

StartingOver10 is right - if it is zero, close it prior to filing. I did that with my CreditOne card knowing I would need them post discharge - and low and behold, they accepted me right back!

BK Discharge 2/11/14

Currently in the garden.

StartingOver10 · ‎08-28-2014

@Anonymous wrote:
Same thing happened to me and the card company closed all my cards even though not all were included.

^^^This is a common misconception. ALL ACCOUNTS ARE INCLUDED when you file Bk. You can't pick and choose which accounts to list or not list in your Bk.

Scupra · ‎08-28-2014

@0REDSOX7 wrote:
StartingOver10 is right - if it is zero, close it prior to filing. I did that with my CreditOne card knowing I would need them post discharge - and low and behold, they accepted me right back!

On the flip side of this, I did not close my Cap1 card and still applied the day I was discharged..still let right back in.

Strepthroat · ‎08-28-2014

Opensource777 both my Barclay cards are still active and reports show open (perhaps not updated yet since discharge was just on August 20). I'll use the card today to see what happens but as far as I see, so far both of my cards are still open.