How is it that credit card co's don't catch on to this ....

[Anonymous]

people applying for a ton of credit cards buying a lot of stuff sometimes very expensive stuff like rolex's and boats and then BK everything ., would the creditors be able to take away the boat and Rolex , cause I've seen people leave BK pretty good , keeps 2 cars , house , everything , from far away you would have never know the person just BK ! I think all cards should be (NPSL) and then be at the creditors discretion to approve or not approve the purchases , like amex charge , visa sig. 

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Citi Double Cash 1k, CSP 5k , Chase United 5k , BOFA Cash 4.5k , Discover it 1k , Chase Slate 2k , Chase Freedom 1k , Hilton Amex 3k , U.S. Airways 7.5k , Amazon Store $500
Gardening from now on last app 2/10/2015

[NRB525]

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@Anonymous wrote:

people applying for a ton of credit cards buying a lot of stuff sometimes very expensive stuff like rolex's and boats and then BK everything ., would the creditors be able to take away the boat and Rolex , cause I've seen people leave BK pretty good , keeps 2 cars , house , everything , from far away you would have never know the person just BK ! I think all cards should be (NPSL) and then be at the creditors discretion to approve or not approve the purchases , like amex charge , visa sig. 

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Citi Double Cash 1k, CSP 5k , Chase United 5k , BOFA Cash 4.5k , Discover it 1k , Chase Slate 2k , Chase Freedom 1k , Hilton Amex 3k , U.S. Airways 7.5k , Amazon Store $500
Gardening from now on last app 2/10/2015

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You may want to do some research into BK law to understand what you get to keep. The shirt on your back, yes. Your boat? Not a chance. The Rolex, doubtful. It's a pretty thorough nit pick through your wallet when you app for BK, although it is concievable that the personality who buys a boat and Rollex on credit in order to hide those to get through BK, would find a way to squirrel those assets away, then lie on the BK app, and subject themselves to potential criminal court action. But, hey if that's how someone wants to roll, there's a place in the headlines for them.

[Anonymous]

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@Anonymous wrote:

 I think all cards should be (NPSL) and then be at the creditors discretion to approve or not approve the purchases , like amex charge , visa sig. 

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All cards already are like this, every purchase (except maybe tiny ones) have to be approved.   Nothing to do with CL or Sig or anything. 

[NRB525]

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@Anonymous wrote:

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@Anonymous wrote:

 I think all cards should be (NPSL) and then be at the creditors discretion to approve or not approve the purchases , like amex charge , visa sig. 

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All cards already are like this, every purchase (except maybe tiny ones) have to be approved.   Nothing to do with CL or Sig or anything. 

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Approved by a computer, which uses the stated CL as a limiter, as well as other algo methods to check for type of purchase. So the NPSL is definitely not on all cards, and where it is, the card issuer expects payment of the NPSL portion the following month, which means charge not credit.

[Anonymous]

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@NRB525 wrote:

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@Anonymous wrote:

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@Anonymous wrote:

 I think all cards should be (NPSL) and then be at the creditors discretion to approve or not approve the purchases , like amex charge , visa sig. 

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All cards already are like this, every purchase (except maybe tiny ones) have to be approved.   Nothing to do with CL or Sig or anything. 

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Approved by a computer, which uses the stated CL as a limiter, as well as other algo methods to check for type of purchase. So the NPSL is definitely not on all cards, and where it is, the card issuer expects payment of the NPSL portion the following month, which means charge not credit.

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I didn't mean the NPSL part, just the second part.   But every transaction is subject to approval.  NPSL on Sig/MC allows the possibility for a transaction that causes the balance to exceed the CL to be approved (and non-sig cards also allowed in the past)

[mikelo22]

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@Anonymous wrote:

people applying for a ton of credit cards buying a lot of stuff sometimes very expensive stuff like rolex's and boats and then BK everything ., would the creditors be able to take away the boat and Rolex , cause I've seen people leave BK pretty good , keeps 2 cars , house , everything , from far away you would have never know the person just BK ! I think all cards should be (NPSL) and then be at the creditors discretion to approve or not approve the purchases , like amex charge , visa sig. 

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Citi Double Cash 1k, CSP 5k , Chase United 5k , BOFA Cash 4.5k , Discover it 1k , Chase Slate 2k , Chase Freedom 1k , Hilton Amex 3k , U.S. Airways 7.5k , Amazon Store $500
Gardening from now on last app 2/10/2015

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The assets you listed like a boat, rolex, etc would very likely be liquidated to the creditors. 

Yes, there are ways to hide assets, like if such an item was a "gift" from a friend/family member, etc. But even this is difficult as there will be holds on all your bank accounts and creditors' attorneys and the Trustee will be poring over every single credit transaction/bank withdrawal that you make. I work at a firm that deals with creditors' rights in bankruptcy and you wouldn't believe the kinds of things people try to pull during proceedings. But rest assured, the BK Trustee is going to be very thorough and there are very serious repercussions if you're caught trying to hide away something. 

There was one case several years back where a person tried to hide over $400K in merchandise behind a "fake" wall in a warehouse he owned. Rest assured, it was discovered and he is now behind bars for that and many other criminal things he attempted.

So what you describe is, shall I say, a popular archetype, but it's really nothing more than a straw man. That kind of stuff doesn't happen in BK.

[Anonymous]

For our purposes, there are two types of bankruptcies. One involves liquidation of all assets while the other allows you to keep some assets and reorganization of your debt. You technically have several different "Chapters" of bankruptcies, but for individuals looking for debt relief the preceeding statement is accurate. 

A liquidation bankruptcy won't let you hold on to much as far as assets. Minimal exemptions are allowed and the bankruptcy code permits states to adopt their own exemptions. Simply put, these exemptions vary from state to state but they tend to be minimal. The reorganization of your debt bankruptcy allows you to save some assets. You don't come out of the bankruptcy free and clear and still have to make payments. Your payment amount, payment terms, etc are modified. 

People don't usually come out of bankruptcies with sizable assets and no liabilities. You might be mistaking personal bankruptcies with corporate bankruptcies. Some people create corporations, give themselves huge compensations and then allow their company to fail. If they are able to successfully take the corporation (or LLC, etc) the bankruptcy process, their personal assets will usually be safe from the bankruptcy process. While many businesses do this legitly, a few individuals sometimes try to game the process by creating businesses with the intention of siphoning money to themselves and taking the business through the bankruptcy process. This, however, is a risky proposition as there are some checks and balances to the bankruptcy process. Moreover, creditors might attempt to pierce the corporate veil protection and sue the individual for compensation despite the corporation having gone through the bankruptcy process.

Bankruptcy is generally not a way of making money or saving assets. Bankruptcies have consequences that can make life difficult for years. While some people are in the unfortunate situation where a personal bankruptcy must be considered, generally it is something most of us want to avoid. As mentioned earlier, a few people are sometimes able to game the system with corporate bankruptcies, but even they face risks as the law does allow creditors to go after the people in charge of the corporation under limited circumstances. 

[chwebb1]

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@Anonymous wrote:

people applying for a ton of credit cards buying a lot of stuff sometimes very expensive stuff like rolex's and boats and then BK everything ., would the creditors be able to take away the boat and Rolex , cause I've seen people leave BK pretty good , keeps 2 cars , house , everything , from far away you would have never know the person just BK ! I think all cards should be (NPSL) and then be at the creditors discretion to approve or not approve the purchases , like amex charge , visa sig. 

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Citi Double Cash 1k, CSP 5k , Chase United 5k , BOFA Cash 4.5k , Discover it 1k , Chase Slate 2k , Chase Freedom 1k , Hilton Amex 3k , U.S. Airways 7.5k , Amazon Store $500
Gardening from now on last app 2/10/2015

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Although I understand your point, I'm fairly sure if someone went out and bought a boat on a CC, the BK courts would raise at least one eyebrow at that purchase. I know of someone who had $5000 in gardening work done, used their CCs for it with the full intention to declare BK weeks later, and the BK court wouldn't allow this person to declare BK because they had just spent all of that money on gardening work.

But I think that I would be a lot less likely to use my CCs if the bank could say "Oh, I see that you're using your card to buy groceries, we won't be able to collect our money/goods if you declare BK, transaction declined". And to be quite honest, it doesn't really seem to be any of the bank's business what I spend my money on as long as I pay the bill when it comes. But then again, I also don't generally charge things to my CCs that I can't afford to PIF when the bill comes.

[taxi818]

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@Anonymous wrote:

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@Anonymous wrote:

 I think all cards should be (NPSL) and then be at the creditors discretion to approve or not approve the purchases , like amex charge , visa sig. 

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All cards already are like this, every purchase (except maybe tiny ones) have to be approved.   Nothing to do with CL or Sig or anything. 

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+1 took words out of my mouth. 

[Anonymous]

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@chwebb1 wrote:

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@Anonymous wrote:

people applying for a ton of credit cards buying a lot of stuff sometimes very expensive stuff like rolex's and boats and then BK everything ., would the creditors be able to take away the boat and Rolex , cause I've seen people leave BK pretty good , keeps 2 cars , house , everything , from far away you would have never know the person just BK ! I think all cards should be (NPSL) and then be at the creditors discretion to approve or not approve the purchases , like amex charge , visa sig. 

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Citi Double Cash 1k, CSP 5k , Chase United 5k , BOFA Cash 4.5k , Discover it 1k , Chase Slate 2k , Chase Freedom 1k , Hilton Amex 3k , U.S. Airways 7.5k , Amazon Store $500
Gardening from now on last app 2/10/2015

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Although I understand your point, I'm fairly sure if someone went out and bought a boat on a CC, the BK courts would raise at least one eyebrow at that purchase. I know of someone who had $5000 in gardening work done, used their CCs for it with the full intention to declare BK weeks later, and the BK court wouldn't allow this person to declare BK because they had just spent all of that money on gardening work.

But I think that I would be a lot less likely to use my CCs if the bank could say "Oh, I see that you're using your card to buy groceries, we won't be able to collect our money/goods if you declare BK, transaction declined". And to be quite honest, it doesn't really seem to be any of the bank's business what I spend my money on as long as I pay the bill when it comes. But then again, I also don't generally charge things to my CCs that I can't afford to PIF when the bill comes.

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Maybe you , me and myfico users are more responsible or have learned to be more responsible using our cc's  . But it kind of sucks when you see people fresh off BK getting a new house ( who cares about apr on the loan) the fact that they ot a new house after destroying there credit is unfair to those that had a couple bumps on the road and didint BK but because o  couple blemishes can't get a new car or anything, now a days you can't even get. Decent job be without a good credit score !!!!