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Clean credit card closed after going bankrupt

PostPosted:Thu Nov 14, 2019 12:49 pm
by JennyG
I went through bankruptcy. One card I had was clean (£0 used with £1200 limit). That card was with my current account provider as well.

After I have informed them about bankrupcy, the limit went down to £70,which I expected. Haven't used it during bankrupcy period at all.

I have discovered later that the credit card has been closed completely. I counted on having it after discharge to use and pay off monthly in full, to start rebuilding my poor credit score. Was that a lawful doing of my bank?

Re: Clean credit card closed after going bankrupt

PostPosted:Fri Nov 15, 2019 6:23 pm
by Hayden
Hi JennyG and welcome to the forum.

It is absolutely standard for a bank or credit card company to cancel a card facility if you go bankrupt. This is the case even if the account has a zero balance.

This is certainly lawful. It is the banks right to withdraw the facility if the account holder becomes insolvenct. Sometimes you might be lucky and a credit card remains active. However 9 times of of 10 the bank will always close it.

But remember once you are discharged you will be able to apply for a "credit repair credit card" quite easily. There are a number of providers who will offer you cards. There is more info about this here: Rebuild credit rating after bankruptcy