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Discover after included in BK Chapter 7???

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CWESTL
Regular Contributor

Discover after included in BK Chapter 7???

Has anyone been successful in obtaining a Discover card after having included Discover in a previously discharged Chapter 7 bankruptcy? I had a Discover card for more than 12 years with an $8500 CL prior to including the debt in my Chapter 7 discharge. The discharged debt tradeline from Discover card will be removed from my CR next year. I was considering applying for a Discover It card after the Discover debt discharge and most of the other baddies fall off my CR next year.   

Chapter 7 Discharge Aug 2013 (Removed 2022 & 2023)
Jan 2024 EQ FICO 8 840
Jan 2024 TU FICO 8 779
Jan 2024 EX FICO 8 788
Jan 2024 EQ FICO 9 824 AMEX Cash Magnet $26K; AMEX Platinum NPSL, POT $27.5K; Cap One QS World MC $11k; Cap One Venture Sign VS $30k; Chase Sapphire Pref $18K; Citi Simplicity $7K; NFCU AMEX Rwds $28k; NFCU VS Sign Cash Rwds $24.1k; NFCU Plat VS $19k; Wells Fargo Reflect $25K; Mercury (previously Barclay Rwds MC) $5750k; Lowes $35k; Neiman Marcus $44k; Discover It $11.5k; Discover It $19.5K; Venmo Visa Sign $20K; Barclaycard (AU) $25.5K; Discover (AU) $19.5k New Mortgage Jan 2016 & Nonreaffirmed Mortgage Refinance Nov 2020; HELOC @ 2.75% Apr 2022; New Auto July 2017; NFCU LOC $20K
GOAL 820 FICOs on ALL 3 CRs by JANUARY 2025.
AMEX Lowes Business $25K
AMEX Business LOC $25K
Chase Ink Business Unlimited $26.5K; US Bank Business Platinum $10K
Message 1 of 11
10 REPLIES 10
0REDSOX7
Valued Contributor

Re: Discover after included in BK Chapter 7???

I've read that Discover has a pretty good memory with regards to bankruptcy.

 

Don't be suprised if they decline you even if it falls off of your credit reprot.  You may need to pay the balance you had discharged before they'll consider you again - I know American Express is the same way.

BK Discharge 2/11/14

Currently in the garden.
Message 2 of 11
CWESTL
Regular Contributor

Re: Discover after included in BK Chapter 7???

Anyone who has had first hand experience with this dilemma please provide input. I had an AMEX Gold and AMEX Optima card for more than 10 years prior to filing Chapter 7 BK. The AMEX Optima balance was included in my BK, but is not reporting on my credit reports. Life has improved considerably since the 2008-2010 timeframe that led me to file bankruptcy.  I've spoken to AMEX previously and was offered a voluntary repayment of the prior debt owed in exchange for a new AMEX account. When speaking to Discover representatives I was told prior discharge of Discover debt did not exclude me from possibly obtaining a card in the future. Additionally, repayment of prior debt was not noted as a stipulation for obtaining a new Discover account. However, I was wondering if anyone has had first hand success in obtaining a new Discover account after having included a Discover account in a prior bankruptcy. 

Chapter 7 Discharge Aug 2013 (Removed 2022 & 2023)
Jan 2024 EQ FICO 8 840
Jan 2024 TU FICO 8 779
Jan 2024 EX FICO 8 788
Jan 2024 EQ FICO 9 824 AMEX Cash Magnet $26K; AMEX Platinum NPSL, POT $27.5K; Cap One QS World MC $11k; Cap One Venture Sign VS $30k; Chase Sapphire Pref $18K; Citi Simplicity $7K; NFCU AMEX Rwds $28k; NFCU VS Sign Cash Rwds $24.1k; NFCU Plat VS $19k; Wells Fargo Reflect $25K; Mercury (previously Barclay Rwds MC) $5750k; Lowes $35k; Neiman Marcus $44k; Discover It $11.5k; Discover It $19.5K; Venmo Visa Sign $20K; Barclaycard (AU) $25.5K; Discover (AU) $19.5k New Mortgage Jan 2016 & Nonreaffirmed Mortgage Refinance Nov 2020; HELOC @ 2.75% Apr 2022; New Auto July 2017; NFCU LOC $20K
GOAL 820 FICOs on ALL 3 CRs by JANUARY 2025.
AMEX Lowes Business $25K
AMEX Business LOC $25K
Chase Ink Business Unlimited $26.5K; US Bank Business Platinum $10K
Message 3 of 11
0REDSOX7
Valued Contributor

Re: Discover after included in BK Chapter 7???

For the Amex, did they offer you the OASIS card program or what type of account?  I burned them, but want to get them back eventually (don't have the 10K to repay them just yet, plus Im not yet a year out from my discharge).

BK Discharge 2/11/14

Currently in the garden.
Message 4 of 11
DaveInAZ
Senior Contributor

Re: Discover after included in BK Chapter 7???


@CWESTL wrote:

Anyone who has had first hand experience with this dilemma please provide input. I had an AMEX Gold and AMEX Optima card for more than 10 years prior to filing Chapter 7 BK. The AMEX Optima balance was included in my BK, but is not reporting on my credit reports. Life has improved considerably since the 2008-2010 timeframe that led me to file bankruptcy.  I've spoken to AMEX previously and was offered a voluntary repayment of the prior debt owed in exchange for a new AMEX account. When speaking to Discover representatives I was told prior discharge of Discover debt did not exclude me from possibly obtaining a card in the future. Additionally, repayment of prior debt was not noted as a stipulation for obtaining a new Discover account. However, I was wondering if anyone has had first hand success in obtaining a new Discover account after having included a Discover account in a prior bankruptcy. 


What AMEX did is illegal - you cannot attempt to collect a debt discharged in BK, and offering an incentive (new card) to get you to repay discharged debt is very much an attempt to collect a discharged debt. Glad Discover is smarter than that.

 

With all your other cards I don't know why Amex & Discover are so important to you. But since you seem to only want responses from somone who discharged Discover debt in BK & then obtained a new card from them, feel free to ignore my response. Smiley Indifferent

 

 

Message 5 of 11
CWESTL
Regular Contributor

Re: Discover after included in BK Chapter 7???

Honestly, I don't recall the type of AMEX account they offered. The conversation took place approximately three months ago. I believe the debt discharge was approximately $5500. I've been considering the pros and cons of repaying the AMEX debt versus using those funds to continue to make other investments. I'm just curious as to lendor approval practices regarding those with previously discharged debt. This information will hopefully be helpful in determining potential approval odds and card lendors with which to apply. 

Chapter 7 Discharge Aug 2013 (Removed 2022 & 2023)
Jan 2024 EQ FICO 8 840
Jan 2024 TU FICO 8 779
Jan 2024 EX FICO 8 788
Jan 2024 EQ FICO 9 824 AMEX Cash Magnet $26K; AMEX Platinum NPSL, POT $27.5K; Cap One QS World MC $11k; Cap One Venture Sign VS $30k; Chase Sapphire Pref $18K; Citi Simplicity $7K; NFCU AMEX Rwds $28k; NFCU VS Sign Cash Rwds $24.1k; NFCU Plat VS $19k; Wells Fargo Reflect $25K; Mercury (previously Barclay Rwds MC) $5750k; Lowes $35k; Neiman Marcus $44k; Discover It $11.5k; Discover It $19.5K; Venmo Visa Sign $20K; Barclaycard (AU) $25.5K; Discover (AU) $19.5k New Mortgage Jan 2016 & Nonreaffirmed Mortgage Refinance Nov 2020; HELOC @ 2.75% Apr 2022; New Auto July 2017; NFCU LOC $20K
GOAL 820 FICOs on ALL 3 CRs by JANUARY 2025.
AMEX Lowes Business $25K
AMEX Business LOC $25K
Chase Ink Business Unlimited $26.5K; US Bank Business Platinum $10K
Message 6 of 11
0REDSOX7
Valued Contributor

Re: Discover after included in BK Chapter 7???

Actually, Dave, what they are doing is not illegal. 

 

They are not attempting to collect a debt - they are simply saying that if you want an account from them, they want you to repay the debt you had previously.  They are not forcing you, nor will they contact you about the debt.  You do not have to pay it and they won't ask for it.  This program has been around for many years from AmEx (called OASIS).

BK Discharge 2/11/14

Currently in the garden.
Message 7 of 11
DaveInAZ
Senior Contributor

Re: Discover after included in BK Chapter 7???


@0REDSOX7 wrote:

Actually, Dave, what they are doing is not illegal. 

 

They are not attempting to collect a debt - they are simply saying that if you want an account from them, they want you to repay the debt you had previously.  They are not forcing you, nor will they contact you about the debt.  You do not have to pay it and they won't ask for it.  This program has been around for many years from AmEx (called OASIS).


Well, I still think it's highly questionable, but since the OP is more interested in how to get back in w/Discover, irrelevant. Maybe my mortgage bank, BMO Harris is overly cautious - I asked them about refinancing instead of going through all the Adversay Procedure to reopen my BK case & reaffirm and they said aboslutely not, that would be an attempt to collect a discharged debt.

Message 8 of 11
sebonne1
Valued Member

Re: Discover after included in BK Chapter 7???

I realize this was asked more than a month ago, but I was approved 2 months ago for a Discover IT card and it has been 7 yrs post BK.  Discover was included in BK.  I called after applying and was informed I would not get the offered rate or terms, and I only received $1,000 CL, but I am still glad I didn't waste a HP for nothing.

Starting Score:9/2013 630
Current Score: 2/2015 myFICO scores: EQ 730 EX 734 TU 734
Goal Score: 760

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Take the myFICO Fitness Challenge

Message 9 of 11
0REDSOX7
Valued Contributor

Re: Discover after included in BK Chapter 7???

Congrats on the Discover!

I, for whatever reason, keep getting direct mailers from the inviting me to apply - nine months post discharge. They offer me certain terms but just don't want to waste the HP.
BK Discharge 2/11/14

Currently in the garden.
Message 10 of 11
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