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DGF is considering Chapter 7 BK. Undue hardship and health issues, are the short version. She has perfect credit but not enough income to really restructure things and eat, LOL!
I have 6 cards (2) USAA, (2) Citi, Chase Freedom, Amex BCP. USAA is out of the question but would either of the other companies refuse to add her post-BK?
I'm allergic to inquiries but would take them for her. Currently: Ex 4, EQ, 4, TU 0. Two from Ex fall off Feb 1st. The remaining Ex inquiries fall off September 1st. The EQ inquiries are from student loans and I have to do two more this year.
More credit cards is something I really don't want. That being said, there may be better products out there for me if the lawyer says BK makes sense.
Currently; high utilization is dragging the score down but there are no negative items.
Everyone will allow you to add her as AU regardless of the bk because she is not responsible for the payments.
the other upside is if she does end up filing bk and she s pretty current at time the bk won't crush her credit as bad as most think or see... The bk itself can a lot of times help a credit file because most are very delinquent by the time they file bk and when the bk is complete all delinquency status stop reporting and update to "included in bk" $0 balance so the more current at time the more she could come out in good shape but most lawyers want you to stop paying for several months before applying.
one other thing to remember if filing a BK would be to close any cards that have a 0 balance prior to filing as you would get a 10 year benefit from them instead of 7 which they would be if IIB.
Thanks!
I definitely recall reading a thread here about USAA closing the account of an AU post-BK.
@enharu wrote:
Most lenders will let you add her as an AU.
However, for certain lenders, such as Amex, chase and citi, you may not be able to add her as an AU if she included those banks in bankruptcy, since she will be blacklisted. Its a YMMV situation. Some were able to do it, some were not. For Amex it's pretty much a guaranteed no.
i keep seeing these posts about Amex and no for AU but I only know a short window back in credit crunch that they actually blocked AU who had bad Amex history... Since then it's gone back to the way it was before that it isn't their responsibility to pay so they don't care.
has anyone recently tried to add an au and got a decline? I know it asks if this person has some sort of past or what not but not all people know someone history so I don't think it's a stretch to just say no and add them.
chase for sure doesn't blacklist for au!
I feel Amex is doable. She doesn't owe them anything and has had a card since 1994 or 1996. The only card with a balance is from Citi and I'm unsure if that's being included or what the definite plans are. Just thinking ahead in case I have to apply for any other lenders.
I recall someone have AU account closed because USAA thought the BK was amoral or something along those lines.
She has a 18+ perfect payment history and Auto enhanced FICO of 840. In the bigger picture I think it may come down to if she's advised to let the accounts go into delinquency prior to BK. IMO, that would delay her recovery some but not being a BK lawyer the opinion is useless.