We had two credit cards with zero balance at the time of our filing Chapter 13 in April 2002. One, Dress Barn, I utilized over the past years every now and then to purchase work clothing and also to help reestablish credit. My limit was even raised during that time and a new updated card sent to me in May 2008. I last utilized the card in mid-2007 and paid the balance of $52 off in October 2007. I have not utilized the card since then but keep receiving their credit card customer discounts, etc. Note, we were discharged in August 2006 and the Chapter 13 will start to come off our crediti reports in April 2009. This weekend my husband and I were away at a group hobby event and we stopped at some outlets with friends. While my hubby went into a men's store with some of his buddies the ladies broke up and went into various nearby stores. I went into Dress Barn and found two great items priced really down that would make great Xmas presents for two of my daughters. Since I had not used my card in over a year and did not have it with me, I asked the store clerk if I could utilize my card for this purchase and she said no problem. Well, whoever she called had her put me on the phone to advise me my account was closed and I would have to contact customer service concerning the matter. I assumed right then and there it was because I had not utilized it in over a year and this was is a common practice in this economy now. I thanked the girl, used my debit for the purchase and went to the car and called customer service. Well, I found out why the account was closed - the rep stated that there is a BK on my records. I told her it's been there for almost 7 years and they are deciding to close it now and our credit scores are in the 790s and we were discharged over two years ago?
This goes to show you that if you have a card that survives BK that it still could get closed out later on by the lender due to the BK on your records. Although I know it will probably do no good, I am sending a snail mail letter on Monday to Dress Barn (directing it to manager/director of Customer Service) explaining this scenario and the craziness of keeping an account open during my entire Chapter 13 and two years thereafter and then closing it due to a BK on my records....I know it is the creditor's right to close an account at any time and I am assuming since I did not utilize the card for a while and with all the credit problems with the present economy, they are not taking risks with anyone. But I still find it somewhat bizarre....
The main thing this shows is that no matter what, having a BK on your records even a long time after filing or discharge can work against you.
This goes to show you that if you have a card that survives BK that it still could get closed out later on by the lender due to the BK on your records. Although I know it will probably do no good, I am sending a snail mail letter on Monday to Dress Barn (directing it to manager/director of Customer Service) explaining this scenario and the craziness of keeping an account open during my entire Chapter 13 and two years thereafter and then closing it due to a BK on my records....I know it is the creditor's right to close an account at any time and I am assuming since I did not utilize the card for a while and with all the credit problems with the present economy, they are not taking risks with anyone. But I still find it somewhat bizarre....
The main thing this shows is that no matter what, having a BK on your records even a long time after filing or discharge can work against you.
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