Capital One & Ch 7

[Anonymous]

Hello all!  Newbie here...

I filed for Chapter 7 last week and was advised by my attorney to open a second checking account on the off-chance my current bank, USAA, decides to close my account. (I had a USAA cc that was IIB) I decided on a Capital One 360 checking account and signed up for it last week - no problems. When I installed the 360 app on my phone, 2 accounts showed up after I logged in. My new 360 checking account and an old Capital One platinum cc account that I had completely forgotten about that had a $0 balance and I haven't used it in years. Any who, all last week that cc account showed I had a $1k cl. Then yesterday, i got a notice from the Capital One CreditWise service that a new public record was on my report, my bankruptcy filing of course. Later, when I logged into the 360 app the platinum card had changed to a $0 cl and status was listed as "This account is restricted". I called to find out what happened as this was a very old account (opened about 8 years ago) that I really didn't want to be closed. After being transferred to a "Senior Account Manager" she said the account was closed due to the recent Ch 7 filing. I'm a little bit shocked and annoyed, especially after reading all the posts that Capital One is bankruptcy friendly.

Has anyone else run into an issue like this? Should I try calling a backdoor number to see if I can get the account reinstated? Or just wait and apply for another cc with them after discharge?

[Anonymous]

If the account is open and you filed, it's pretty normal for creditors to close the account even if it's a zero balance especially since you can't exclude accounts from BK. I would honestly get a checking account with a different lender, ideally a local credit union. You can prob get a cap one after DC, but not while it's open/active.

[GatorsFan84]

It's sad but it happens.  I had multiple CCs with zero balances and high limits that were closed because of the BK.  I wish I would have read here before I filed as it's better to close the zero balance ones before you file.  The only account that stayed open for me through BK was my dell preferred account.

[Anonymous]

+1 to Harley and Gator. My zero balance accounts were closed, every single one, due to my BK. It was a bummer, but to be expected. Good luck with rebuilding! 

[StartinOver]

I think that is standard practice. But what I find interesting is that I have an account from a closed store that has been reporting to my credit for almost 40 years. Even though there was a bankruptcy years ago.

[Anonymous]

Thank you ALL for the feedback!

My 341 meeting is scheduled for Friday, April 21. I'm looking forward to starting over!