Apple Card - Post Bankruptcy (Chapter 7)

Bankruptcy removes the ability to take legal action to recover debt, it does not erase the debt, just the ability to collect. Bankruptcy also causes a huge downgrade of your credit rating for up to seven years. Goldman Sachs has every right to deny you credit and require you to pay the debt before considering more credit. So does any other bank or merchant.

Thank you for posting your additional information. Standard operating procedure for the vast majority of banks. Banks can have long memories, there is not law that says a private business must do business with a former account holder. Bankruptcies stay on your credit report for 7 years, and maybe in few states a little less time and a few a little longer. You will generally not get harassing phone calls and letters in the mail.

Two of the better credit card issuers will consider recently discharged bankruptcies, Capital One and Discover. You may have to start with a secured credit card and then after 6 to 12 months graduate to a revolving account with a few hundred dollars of credit.

Some banks have amazingly long memories. I’ve a friend that after 20 years cannot get an American Express card. Barclays is another bank that’s known to have a long memory. Good luck with your new credit journey.

That’s was probably from a few years ago. Apple Card Mastercard was Goldman Sachs’ first consumer credit card. In my experience, their practices were pretty lax the first few years. However, over the last several years Goldman has applied stricter precautions when dealing with their account holders.

I noted above that Goldman Sachs is not alone in their restrictive policies and procedures. My best advice is to try and an every few years and see what they say.

I thought I’d give a more complete replay to your post. My days starts at 4 AM, so by 8 PM, I’m just trying to finish up on a few replies and other miscellaneous things.

The fact that they continue to give you access to online resources to make periodic payments is a good thing in my opinion. It gives you the opportunity to make payments and clear the debt. Many banks have a complicated procedure for making payments, it can be expensive to the former account holder and is not convenient. They are letting the account holder know up front that there is an account that needs to be settled before they’ll be considered for new credit.

Many times I’ve seen other people complain, but being upset about the exact opposite. They ask why the bank makes them repeatedly apply, give the same reason for the decline (bankruptcy) and deny them credit. They want to know why the bank makes them jump through hoops, get their hopes up, then deny them for a discharged bankruptcy? Why can’t them bank show them up front what the issue is and not make them waste time?

There is no right or wrong. Each bank is entitled to their own business practices and procedures. If you don’t like Goldman’s practices, find another bank. I’m surprised that your bankruptcy lawyer didn’t explain a lot of this. You may want to review what the US Federal courts have to say about Chapter 7 bankruptcy and you’ll have a better understand of what’s going and understand Goldman Sachs is within their rights in regard to their practices.

https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics