Getting certain banks after bankruptcy

ALLgoodABQ · ‎03-03-2019

So after contemplating this for the last month or so, I’ve made the decision to file bankruptcy. I hate to do this as I’ve worked so hard on my payment history over the last few years. But too much credit card debt on top of a $700 truck payment was leaving me with nothing. Now it’s back to square one. I’m giving up my truck, and will probably lease my next vehicle, I’m sure it will take me a few months though. My question for all of you is about what I’ve read on here about getting credit cards with some banks again. Here’s a current list of my CC’s and their balances...

Amex blue cash $980/1000

Care credit $1150/1500

Cap1 QS $835/900

Cap1 Plat $1,493/1500

Barclays $3,612/3000

Dell $2,832/3000

Amazon $868/900

Walmart $488/500

Old Navy 57/300

PayPal 1994/2000

From what I’ve read is that capital one is the most forgiving, but what about synchrony or Amex? It felt so good getting approved for the Amex and I’d hate to never get it again. Any thoughts of getting these cards again in the future?

Anonymous · ‎03-03-2019

Amex is likely a card you'll never have again. Even after the bankruptcy falls of your credit report, Amex still remembers you burned them.

Capital One and Synchrony are forgiving- but, it's sort of random. Barclay's is a notorious blacklister.

At least you don't have Chase. They never forgive either. But, I believe you can get a card with them after your bankruptcy is no longer reporting.

It's too bad, $15k is not much credit card debt at all. I imagine you are upside down on your truck? It's just a shame because it's basically one big bad decision. I feel crappy about having a $300 car payment.. lol Got used to my $200 Versa payment. Cannot imagine ever signing on the dotted line for a $700 payment.

Anonymous · ‎03-03-2019

If you are 100% sure you are going to file for bankruptcy then pay off the Amex and then close it before you file. Make sure it’s reporting on your credit report as “closed by consumer”. Because If you burn Amex you will be blacklisted for 10 years. Blacklisted means no cards. Zip. Zero.

Search this forum and you will see. Some have been able to get back in sooner by paying them back 100% but since it’s such a small amount I would not risk it. Also for some of their cards they will automatically decline you if a BK is showing on your reports even if you have not burned them. So that’s 10 years anyway.

Are you sure you really want to file? Why don’t you speed up your plan to get rid of the $700 truck. If you lease something for around $200 you will have $500 a month to put toward paying down your debt.

FireMedic1 · ‎03-04-2019

$14, 309 really isnt worth filing BK unless its a 13 if at all costs you'd decide to go ahead for it. It would hurt less and only hurt you for 7 years and not 10 with a 7. The $700 a month you'd save from the truck would take without adding interest 20 months to be debt free. That is if you got a car or truck with no payments. There's so many angles you could go or have to go. Would you qualify in your state and pass the means test. If not it would have to be a 13. Consult with a BK lawyer would be the best advise. But you could pay the debt off with some lifestyle changes. It may suck for a couple years. But there may not have to be a BK at all.

ALLgoodABQ · ‎03-05-2019

Then just let them repo my truck? I have tried everything from refinancing to trading in and I’ve been told no. I don’t know what else to do besides bankruptcy. I do qualify in New Mexico. Trust me I don’t want to do this either, but what choice to I have? Seems like people have better luck getting scores back up after bankruptcy then when charge offs and repos hit. Am I wrong?

JTC-137 · ‎03-05-2019

I would absolutely not file bk unless there’s no other option. I don’t know your income but I would imagine you could fight through this in 2 years or less.

How upside down are you on the truck? That seems like your 800lb gorilla in this situation. You could you sell it for market value and get a personal loan for the difference, perhaps $2k more and pay cash for a beater just to get you to and from for a while while hammering the credit cards. Do you have retirement you could pull from if the personal loan option is a no-go?

If none of that works, I’d probably go with letting it repo vs. filing bk. You could always try to negotiate a PFD for the repo balance later when your situation improves

ALLgoodABQ · ‎03-05-2019

I owe $35k on the truck. It’s worth about $27k, but I’m sure they will auction it at like $20k so I’ll be hit with $10k-15k. I make about $33k a year, probably less since taking time off to help take care of my grandmother, which is where all this started. I took a loan from my 401k back in July I’m still paying for to help me get ahead. My scores are low due to putting so much on my cards. My first 30 days just hit on my CR for the truck, which is odd because I’m well over 60 now, but everything else is current.

Anonymous · ‎03-05-2019

@Anonymous wrote:
If you are 100% sure you are going to file for bankruptcy then pay off the Amex and then close it before you file. Make sure it’s reporting on your credit report as “closed by consumer”. Because If you burn Amex you will be blacklisted for 10 years. Blacklisted means no cards. Zip. Zero.

Search this forum and you will see. Some have been able to get back in sooner by paying them back 100% but since it’s such a small amount I would not risk it. Also for some of their cards they will automatically decline you if a BK is showing on your reports even if you have not burned them. So that’s 10 years anyway.

Are you sure you really want to file? Why don’t you speed up your plan to get rid of the $700 truck. If you lease something for around $200 you will have $500 a month to put toward paying down your debt.

This is AWFUL advice and any attorney will tell you not to do this.

Anonymous · ‎03-05-2019

@Anonymous wrote:
@Anonymous wrote:
If you are 100% sure you are going to file for bankruptcy then pay off the Amex and then close it before you file. Make sure it’s reporting on your credit report as “closed by consumer”. Because If you burn Amex you will be blacklisted for 10 years. Blacklisted means no cards. Zip. Zero.

Search this forum and you will see. Some have been able to get back in sooner by paying them back 100% but since it’s such a small amount I would not risk it. Also for some of their cards they will automatically decline you if a BK is showing on your reports even if you have not burned them. So that’s 10 years anyway.

Are you sure you really want to file? Why don’t you speed up your plan to get rid of the $700 truck. If you lease something for around $200 you will have $500 a month to put toward paying down your debt.

This is AWFUL advice and any attorney will tell you not to do this.

Thanks for your opinion “valued contributor”. But as they say, to a hammer everything looks like a nail.

Your actions depend on your end goal. (Please re-read the title of the thread. Lol) If one of the end goals is to re-emerge on the other side with a particular banking relationship intact then this is indeed sound advice. If the goal is to just wipe out all debt without concern for your options on the other side then another strategy may be in order. Perhaps even one recommended by an attorney 😉.

Since one of your many (I assume) skills does not seem to be tact. Kindly skip any of my post in the future. Have a lovely lovely day 🤫

Anonymous · ‎03-05-2019

The reason this is bad advice is because it is not allowed per the bankruptcy rules. This is called preferential payment. If the trustee sees that you paid one bank in full right before filing bankuptcy he can have the payment revoked and then put the funds into your bankuptcy estate. If you lie about paying one credit card in full you risk having your bankuptcy dismissed. This is why this is "awful" advice. I'm not trying to make anyone feel bad here. I think it is important to give correct and accurate advice on these forums because many people read these posts.