Dealing with banks after bankruptcy
In your experience, if I claim bankruptcy and list X-bank as a creditor, how likely is X-bank to deal with me in the future?
Our bankruptcy included a loan at one bank, and credit cards from 2 other banks. This certainly limits us in the future if these banks will never deal with us again.
I know the bankruptcy will no longer appear on our credit report after 7 years – will the banks rely on our credit report if we applied for credit with them in the future (after the bankruptcy is removed from our credit report), or would they rely on our previous history with them?
This is a question I can’t answer. When our role as the Trustee is completed we typically don’t hear much from those who have been discharged as we are no longer part of the equation.
I would anticipate that each of these banks would rely on a combination of the credit history and their own internal experience, but this is just an assumption. However, for this reason I always suggest people focus on developing a relationship with a new institution.