Filed for bankruptcy and here is your new credit card.

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This story is about my brother. He’s been out of work for almost four years now with a workers comp claim. In the last four years he has had six surgeries which were two lower lumbar spinal fusions, upper neck spinal fusion, carpal tunnel on both hands, cubital tunnel on his left arm. He lives in California so workers comp stops paying you after two years, then they give you a loan of your future settlement, they subtract that amount when the settlement is issued. As you know living in California isn’t cheap, so the workers comp checks didn’t meet all his living needs, so he had to start using his credit cards to make ends meet.

Before all this he had a FICO of 800. He bought a nice 2016 GMC truck and almost had it paid off before he had to leave work because of his pain. One by one the banks started to cancel his credit cards and before they did he paid off his truck with one of them so they couldn’t repossess it. He ended up filing for bankruptcy three months ago. He doesn’t think he will be going back to work any time soon because he has to wait for all the final physicals from the State, which can take up to a year to finally get in for one. He has filed for permanent disability which can take up to a year to be approve, most times the first request is declined from what I read.

So my brother texted me and said he was approved for a credit card already, $2500 limit. I thought to myself, who would offer someone that filed bankruptcy three months ago a new credit card? I wasn’t pissed at my brother for getting a new credit card. You do have to build your credit back up in this world. I was pissed that banks are letting people have credit cards right after they filed for bankruptcy and all the debt they racked up in the past just disappears. I would think a year should pass before banks start letting these people have credit again. I think they should start with the credit cards that the person deposits their own money as the limit, this way they can rebuild their credit with their own money.

I will finish by saying I feel Big Bank and Big Pharma contribute to this countries on going problems.
 

CKN

Joined
Oct 14, 2014
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Utah
That's nothing.
How about those who walked away from houses (consequently loans) during the last housing crisis and then turned around and bought new new a few years later?

To answer your question-that's a really small credit amount. Maybe your bank is looking at every aspect of his past credit standing (800 FICO) and considered the $2,500 credit extended low risk.
It looks like to me your brother is a "good guy" and the bank sees that too.

I don't see a problem like you do.
 
Joined
Mar 30, 2014
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Took me about a year to get a credit card after I completed my bankruptcy. Took me 3 years to complete it under chapter 11. Think my FICO dipped down to 580 or 620 after the bankruptcy. Takes time but my FICO is over 800 today.

Does he have an attorney and lawsuit for this?
 
Joined
Aug 5, 2002
Messages
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Silicon Valley
This story is about my brother. He’s been out of work for almost four years now with a workers comp claim. In the last four years he has had six surgeries which were two lower lumbar spinal fusions, upper neck spinal fusion, carpal tunnel on both hands, cubital tunnel on his left arm. He lives in California so workers comp stops paying you after two years, then they give you a loan of your future settlement, they subtract that amount when the settlement is issued. As you know living in California isn’t cheap, so the workers comp checks didn’t meet all his living needs, so he had to start using his credit cards to make ends meet.

Before all this he had a FICO of 800. He bought a nice 2016 GMC truck and almost had it paid off before he had to leave work because of his pain. One by one the banks started to cancel his credit cards and before they did he paid off his truck with one of them so they couldn’t repossess it. He ended up filing for bankruptcy three months ago. He doesn’t think he will be going back to work any time soon because he has to wait for all the final physicals from the State, which can take up to a year to finally get in for one. He has filed for permanent disability which can take up to a year to be approve, most times the first request is declined from what I read.

So my brother texted me and said he was approved for a credit card already, $2500 limit. I thought to myself, who would offer someone that filed bankruptcy three months ago a new credit card? I wasn’t pissed at my brother for getting a new credit card. You do have to build your credit back up in this world. I was pissed that banks are letting people have credit cards right after they filed for bankruptcy and all the debt they racked up in the past just disappears. I would think a year should pass before banks start letting these people have credit again. I think they should start with the credit cards that the person deposits their own money as the limit, this way they can rebuild their credit with their own money.

I will finish by saying I feel Big Bank and Big Pharma contribute to this countries on going problems.
Welcome to the world of financial engineering, loan sharks have been lending to iffy credit people since humanity begins and for $2500, even if he couldn't pay back the principle as long as the lenders are making money overall, write-offs is just a calculated risk vs rewards.

A lot of people I heard from say lenders look at medical bankruptcy different from irresponsible spending, addiction (substance abuse or gambling) differently.
 
Joined
Apr 15, 2010
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Atlanta,GA
This story is about my brother. He’s been out of work for almost four years now with a workers comp claim. In the last four years he has had six surgeries which were two lower lumbar spinal fusions, upper neck spinal fusion, carpal tunnel on both hands, cubital tunnel on his left arm. He lives in California so workers comp stops paying you after two years, then they give you a loan of your future settlement, they subtract that amount when the settlement is issued. As you know living in California isn’t cheap, so the workers comp checks didn’t meet all his living needs, so he had to start using his credit cards to make ends meet.

Before all this he had a FICO of 800. He bought a nice 2016 GMC truck and almost had it paid off before he had to leave work because of his pain. One by one the banks started to cancel his credit cards and before they did he paid off his truck with one of them so they couldn’t repossess it. He ended up filing for bankruptcy three months ago. He doesn’t think he will be going back to work any time soon because he has to wait for all the final physicals from the State, which can take up to a year to finally get in for one. He has filed for permanent disability which can take up to a year to be approve, most times the first request is declined from what I read.

So my brother texted me and said he was approved for a credit card already, $2500 limit. I thought to myself, who would offer someone that filed bankruptcy three months ago a new credit card? I wasn’t pissed at my brother for getting a new credit card. You do have to build your credit back up in this world. I was pissed that banks are letting people have credit cards right after they filed for bankruptcy and all the debt they racked up in the past just disappears. I would think a year should pass before banks start letting these people have credit again. I think they should start with the credit cards that the person deposits their own money as the limit, this way they can rebuild their credit with their own money.

I will finish by saying I feel Big Bank and Big Pharma contribute to this countries on going problems.
The creditor probably pulled his credit shortly after he filed so the BK wasn't reporting. It's only $2,500. That's nothing.
 
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Maybe your bank is looking at every aspect of his past credit standing (800 FICO) and considered the $2,500 credit extended low risk.
It looks like to me your brother is a "good guy" and the bank sees that too.
I don't know if any human beings are involved in these approval processes anymore. A computer decides no or yes and if yes, the credit limit, in a fraction of a second. The longest part of the approval would be pulling your credit scores from the reporting agencies.
 
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Jul 14, 2020
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459
i have friend his brother got a house foreclosed . Twice . bankruptcy twice. a couple of years later he is in a new house . its strange how things work these days
 
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i have friend his brother got a house foreclosed . Twice . bankruptcy twice. a couple of years later he is in a new house . its strange how things work these days
Debt with collateral works differently from just unsecured debt. As long as the foreclosure can bring back most of the value it is easy to just give out a loan.

I don't know if any human beings are involved in these approval processes anymore. A computer decides no or yes and if yes, the credit limit, in a fraction of a second. The longest part of the approval would be pulling your credit scores from the reporting agencies.
Unlikely as computer is good at calculating statistics of large number of applicants, they won't need human (cost) to do these and remove human bias from potential lawsuits or corruption like bribery. The bigger risk is of course the computer model being wrong (financial market collapse and asset price dropping beyond model estimates) but adding human (cost) won't change that anyway.
 
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Bankruptcy isn't the end of the world, We did a hard money loan to some people that had a medical bankruptcy . They were good, people [credit history] and and it saved their house. They always paid us on time and when they sold their house they thanked us for having faith in them. Stuff happens.
 
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Canada, eh?
$2500 CC isn't much for most of us. But to some, that's a huge amount.

I also have a bother who's filed for chapter 11 in the past. He has terrible credit, so the best card he can get is on with a limit of $500 and an interest rate of roughly 20%
He's pleased with it as it allows him to rent a car every once in a while to go see his daughter.

If I were a lender I certainly wouldn't give him a CC.
🙅‍♂️
 

CKN

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I don't know if any human beings are involved in these approval processes anymore. A computer decides no or yes and if yes, the credit limit, in a fraction of a second. The longest part of the approval would be pulling your credit scores from the reporting agencies.
Somebody writes the software parameters.
 
Joined
Jul 15, 2003
Messages
3,120
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MN
This story is about my brother. He’s been out of work for almost four years now with a workers comp claim. In the last four years he has had six surgeries which were two lower lumbar spinal fusions, upper neck spinal fusion, carpal tunnel on both hands, cubital tunnel on his left arm. He lives in California so workers comp stops paying you after two years, then they give you a loan of your future settlement, they subtract that amount when the settlement is issued. As you know living in California isn’t cheap, so the workers comp checks didn’t meet all his living needs, so he had to start using his credit cards to make ends meet.

Before all this he had a FICO of 800. He bought a nice 2016 GMC truck and almost had it paid off before he had to leave work because of his pain. One by one the banks started to cancel his credit cards and before they did he paid off his truck with one of them so they couldn’t repossess it. He ended up filing for bankruptcy three months ago. He doesn’t think he will be going back to work any time soon because he has to wait for all the final physicals from the State, which can take up to a year to finally get in for one. He has filed for permanent disability which can take up to a year to be approve, most times the first request is declined from what I read.

So my brother texted me and said he was approved for a credit card already, $2500 limit. I thought to myself, who would offer someone that filed bankruptcy three months ago a new credit card? I wasn’t pissed at my brother for getting a new credit card. You do have to build your credit back up in this world. I was pissed that banks are letting people have credit cards right after they filed for bankruptcy and all the debt they racked up in the past just disappears. I would think a year should pass before banks start letting these people have credit again. I think they should start with the credit cards that the person deposits their own money as the limit, this way they can rebuild their credit with their own money.

I will finish by saying I feel Big Bank and Big Pharma contribute to this countries on going problems.
Forget the bankruptcy. He has no job or income?
 
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From a banking/lending perspective, he has a paid-for truck, no debt post-bankruptcy, a good prior payment history before the medical stuff, and no ability to file for bankruptcy again for several years. A $2500 credit card is pretty low risk for that scenario. I'm not condoning it or saying it's a good idea. Just trying to think through the eyes of the bank and where they might be coming from.
 

CKN

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From a banking/lending perspective, he has a paid-for truck, no debt post-bankruptcy, a good prior payment history before the medical stuff, and no ability to file for bankruptcy again for several years. A $2500 credit card is pretty low risk for that scenario. I'm not condoning it or saying it's a good idea. Just trying to think through the eyes of the bank and where they might be coming from.

Yep-the same thing I was thinking.
 

Finklejag

Thread starter
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Forget the bankruptcy. He has no job or income?

Nope. He can’t go back to work until the state clears him. He sold his truck to Carvana for a huge profit, bought a used car and been living off of the left over money. It won’t last long though.
 
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Ohio
Somebody writes the software parameters.
Somebody wrote the parameters and after that, it's running on it's own. If a human has to get involved with every approval to approve the approval, let people do the entire process.
 
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