Legal Question in Bankruptcy in Georgia

12 yrs after bankruptcy former credit rejects me

My husband and I filed a joint bankruptcy 12 years ago due to loss of income and medical bills from our child. We have since got back on our feet and have slowly rebuilt our credit and now have a fico score around 800 which I am told few people have. We were recently in the market for a new mattress set and we found one we liked and were planning on paying cash but the store (a former creditor in our bankruptcy) was offering an additional 120.00 off for opening a charge account with them so we decided to do that and then pay the bill off when it came in. We were declined. When the letter came in the mail it stated we were declined due to our past history with the company. Is this legal? I did not think that a bankruptcy could be held against you after ten years. Thank you for your response.


Asked on 12/30/03, 9:58 am

1 Answer from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: 12 yrs after bankruptcy former credit rejects me

You are confusing two separate things. There is a limit to how long negative credit, such as bankruptcy, can stay on your credit report. So, many creditors will not know about your filing. Completely separately, a creditor cannot be forced to extend you credit. It stands to reason that if they have lost money one time, they will not risk it again. It is perfectly legal for them to consider the bankruptcy. Keep in mind also that while it may not be on your credit report, many applications for credit, jobs, insurance and other things will ask if you have ever filed. These usually must be answered honestly, or there could be negative consequences (such as insurance not paying a loss because you provided false information). The truth is - and many people don't realize this before filing -- the price of bankruptcy does not end with the credit report. Sorry for the bad news. However, on the positive side, you should be commended for the hard work of building back your credit. That hard work will also stay with you for a lifetime and provide many positive benefits. Good luck!

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Answered on 12/30/03, 10:07 am


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