Filed for bankruptcy and here is your new credit card.

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Perhaps California laws are different, but my cousin's hubby is a lawyer and he once told me that it's easy to get credit after a bankruptcy because you can't file for bankruptcy again for XX amount of years after you file for your first bankruptcy. Any truth to this?
If so, the credit card issuer won't have to worry about him filing for bankruptcy for awhile.
 
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OP, do not ignore the amount of pain your brother has to be going through with the medical problems he has. I remember before I had an I.D.E.T. procedure performed on L5-S1 disk and my back pain was so severe that sometimes I would blackout and fall right where I was at and wake up on the ground. I remember thinking that I truly understood why some people with back pain would commit suicide. And realize that if I did not have the family that I do have that I would have seriously considered that myself. Please realize that your brother is experiencing a lot of very serious physical pain and needs family to support him. And I don't mean financial support I mean just being someone he can talk to and someone who let him know good they care about him. Severe physical pain has a huge mental toll on a person and people that are experienced it need family to be on their side.
 

CKN

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Perhaps California laws are different, but my cousin's hubby is a lawyer and he once told me that it's easy to get credit after a bankruptcy because you can't file for bankruptcy again for XX amount of years after you file for your first bankruptcy. Any truth to this?
If so, the credit card issuer won't have to worry about him filing for bankruptcy for awhile.
Pursuant to federal statute, appoint bankruptcy judges to preside over bankruptcy cases . Bankruptcy judges make up a unit of the federal district courts called bankruptcy court. Actual jurisdiction over bankruptcy matters lies with the district court judges, who then refer the matters to the bankruptcy court unit and to the bankruptcy judges.
 
Joined
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MA
Perhaps California laws are different, but my cousin's hubby is a lawyer and he once told me that it's easy to get credit after a bankruptcy because you can't file for bankruptcy again for XX amount of years after you file for your first bankruptcy. Any truth to this?
If so, the credit card issuer won't have to worry about him filing for bankruptcy for awhile.
It depends what type of bankruptcy you filed for. Anywhere from 2 to 8 years.

 
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Jul 15, 2003
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MN
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.
Yeah, I get that. Sounds like a bad situation. What I meant was I was surprised he got a credit card with no income or job.
 

Finklejag

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That is what irks me about it. It’s like these banks want people to fail.
 

CKN

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True, but don't act like predatory lending doesn't exist.

You know you got me here. I was ALWAYS smart with money..........I borrow money and have banks willing to lend me money on terms that I know are competitive.
 
Joined
Aug 5, 2002
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Are you guys pissed off that someone is getting a $2500 credit card limit?

Seriously, we are not talking about 250k or even 25k here. $2500 is a very small amount. So small that even a refrigerator purchase can easily be over that and your monthly rent is going to be at least 1k, gas $200 a month, food $500 a month, etc. $2500 is like a normal transaction you pretty much pay off every month and use again every month. If you go over 2 months of living expenses without paying off the balance you would exceed it already.

You do know that most people even bankrupt people would likely need to use credit card to pay online for things like daily expenses right? Someone will be using it and paying it off, and irresponsible people will be over the limit before the end of month already.
 
Joined
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Perhaps California laws are different, but my cousin's hubby is a lawyer and he once told me that it's easy to get credit after a bankruptcy because you can't file for bankruptcy again for XX amount of years after you file for your first bankruptcy. Any truth to this?
If so, the credit card issuer won't have to worry about him filing for bankruptcy for awhile.
^This^

The bank that offered the $2500 card knows he can't BK again for 7 years IIRC.

The rates are probably horrible.

Just because they offered him a card doesn't mean it's a good deal for him. Chances are, they think it's a good deal for the issuing bank.
 
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^This^

The bank that offered the $2500 card knows he can't BK again for 7 years IIRC.

The rates are probably horrible.

Just because they offered him a card doesn't mean it's a good deal for him. Chances are, they think it's a good deal for the issuing bank.
Subprime loans are way more profitable than prime. It is fair because for the same risk reward profile why would any investor take more risk? Unless there is a monopoly for subprime loan the subprime borrowers should be able to compare and find what works for them and pick the best deal among the worst deals.

This is the same for insurance as well. We can compare and shop for the lowest cost among insurance companies and they price us based on what they think is our risk profile.
 
Joined
Aug 15, 2020
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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.
 
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I broke my back in a motorycle crash in 1979.....in the hospital in a body cast for two months....Ive been in constant pain all my life from it.....in 2007 i could not work anymore .....went on short term dis from ibm .....long term was a diff story....so was getting SS disability......after years i gave up......lucky when i worked i saved money like mad and bought condo's in north Scottsdale or i would be up the creek with no paddle....and my wife spent money like it was free.
I lived off savings and buying and selling condo's and Rolex watches till 63 then i got SS which is a huge help. 2300 aint much but with money i have still I live well....I would get CC offers with no job and 25k credit limit daily.....go figure.
Ive had AMEX for 41 years nothing but great service....now i only have a gold card....
About 6 months ago i get a letter from discover saying i dont meet "their" standards and after 17 years no more discover card.....I sent them a letter back.....dear discover does the letters F.U. mean again to you.....they really pissed me off .....after charging over 200k easy never late once ......A-holes.
I've had AMEX 41 years and have had nothing but praise for them .....they really saved my *** more than once when i was a roadie fot IBM.
 

BlueOvalFitter

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One of my neighbors is in debt above her eyeballs. It's mostly CC debt. She wants to file bankruptcy, but she said she has to hire an attorney, which she says it will cost her $1500 up front. Is that true? Also, she owns a 2002 Toyota Corolla. She thinks the court will take it to pay towards her debt. Is that true? She is asking me for advice because I had filed for bankruptcy when I was married (1993).
I don't think bankruptcy is the same today as it was in 1993.
 
Joined
Jul 10, 2012
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Think about what the OP is saying, seriously.
Do you want banks to be your gatekeeper and a banker (or any company) to decide your life on a timeframe for when you should be eligible to have credit restored to you?
Some might consider that discrimination depending on status and class. I think your brother is being rewarded for his good credit before his misfortune.
In the USA you are a free individual to live your life as you want, your decisions are not the fault of a company or a bank.

Think about it. Why is it in todays world that someone else or some company is responsible for you.
The question is, do you want to be free?
or
Do you want to have other people ruling over you and deciding your life decisions?
 
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