Maintaining a credit relationship with your bank after BK?

[masscredit]

What has been your experience with maintaining a credit relationship with your bank after BK?  I'm guesing checking and savings accounts stay open. What happens if you have a credit card with them but didn't burn them?  Are some more likely to open another account after the discharge? And what if you burned them with that card? The same with an auto loan (I know about reaffirming)?  

[Anonymous]

So far I have not had any issues opening checking/savings accounts with multiple banks. I think it really depends on who you bank with. For example, I bank with Chase, but I won't be able to get a card with them until my BK falls off (10 years). I opened a Wells Fargo checking/savings since that is the only bank I didn't have a card with during BK.  I believe after some time, I will probably have a good chance at getting a Wells Fargo credit card. I've seen some members on here get the card 12 months post BK.  I don't know if some banks will leave the card open after discharge. My Discover was in good standing, but they closed it during the BK process. 

[KINGTRAUMATIC]

With some banks there are hard rules that they will not extend any credit to you, until you reached a certain time period outside of your BK. Seems like with bigger banks they are less forgiving with the exception of Discover, and Cap1 where some people are extended credit directly out of a BK. In my particular situation I burned Navy Fed and they will never extend credit to me until I pay them back. However I was able to reopen my CKG/Savings, I did this to use the member to member transfer option since I'm Active Duty Navy and all my fellow Sailors only use Navy Fed. I would suggest looking for a credit union or one of the forgiving banks if you want a banking and credit relationship, Hope that helps!

[masscredit]

My credit life is a little rocky right now so I'm thinking about the future. My main bank is DCU. I like them. They are great and I would like to continue my relationship with them if things go south. I've had a number of auto loans there. Just a matter of making a phone call to be pre-approved for the amount I'm looking for. They hold my current auto loan. I also have a card with a $5K limit. I use it and usually PIF. I'd like that card to have a zero balance if things goto the worst case. 

[FireMedic1]

From your siggy:

Cap 1 - $23,000 / Barclay Apple Rewards - $18,000 / Lowe’s - $17,000 / Cap 1 - $15,000 / Walmart - $15,000
Cap 1 - $12,000 / PenFed - $10,000 / JC Penney - $10,000 / Discover IT - $9700 / Discover IT - $7500
NFCU - $8800 / Barclay Rewards - $5400 / DCU - $5,000 / Merrick - $2400 - Total - $158,800

You probably have a high income and wont be able to file Chap7 with a total CL that high. So it will be a Chapt13 and they will get paid back.

[Anonymous]

@FireMedic1 You got some great scores 5 years post BK. That's great to know that scores can get into the 800's with Bk still on file. Congrats on that! 

[masscredit]

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@FireMedic1 wrote:

From your siggy:

Cap 1 - $23,000 / Barclay Apple Rewards - $18,000 / Lowe’s - $17,000 / Cap 1 - $15,000 / Walmart - $15,000
Cap 1 - $12,000 / PenFed - $10,000 / JC Penney - $10,000 / Discover IT - $9700 / Discover IT - $7500
NFCU - $8800 / Barclay Rewards - $5400 / DCU - $5,000 / Merrick - $2400 - Total - $158,800

You probably have a high income and wont be able to file Chap7 with a total CL that high. So it will be a Chapt13 and they will get paid back.

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Actually, my income is about half of that $158K depending on the year.  Many of those cards grew over time. The $23K Cap 1 card was an account combination.  Lowes started off at $17K out of the gate. Some others had healthy SLs. 

[masscredit]

Sometimes I read on here a few years ago, it was from a person who had a car loan and credit card at the same bank. He burned them with the card but wanted to keep the car loan. If I remember correctly, the bank wasn't eager to work with him because of that. 

[FireMedic1]

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@Anonymous wrote:

@FireMedic1 You got some great scores 5 years post BK. That's great to know that scores can get into the 800's with Bk still on file. Congrats on that! 

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Dont think 800 will be achieveable with a BK. The only baddie I have is a BK. No CO's. lates, burned no one, nada. Its was all a judgement from an old card, both are off my reports and the IRS. If the BK wasnt there. I'd be squeeky clean.

[Anonymous]

@FireMedic1  You are the first I've seen to have none of the derogatory issues that most us filed for. It's unfortunate that you had to file for that judgment and IRS issue. Good thing it's gone now. For me, getting into the 700's is plenty. Time heals everything. Again, congrats on that progress.