New Hampshire Bankruptcy Receivers Forced To Use Credit Cards

The main parking garage for the U.S. Bankruptcy Court in New Hampshire only accepts credit cards, reports Credit Slips.

Consumer debtors receiving a bankruptcy have to attend various meetings in the building. Also, to get a bankruptcy discharge, they may need a credit card.

Of the debtor’s interviewed as part of the Consumer Bankruptcy Project, over 92 percent said they received a credit card offer in the mail afterwards.

The problem is that the only creditors who are going to give someone with a bankruptcy on their record are going to set usurious terms, owing to their bad credit history.

We’re all for personal financial responsibility, but to expect a bankruptcy receiver to have the discipline to resist using a bad card smacks of out and out victimization.

Writes Credit Slips, “Should Chapter 7 debtors accept one of the dozens of credit card offers they get in the first month of their bankruptcy or should they walk, bike, snowmobile, etc to the bankruptcy court?”

Bankruptcy Court Tells Debtors To Charge It [Credit Slips]
(Photo: samwilkinson)

Comments

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  1. homerjay says:

    Well, It KINDA makes sense… I mean, if you’re bankrupt you’re probably not going to have any cash on you. It just stands to reason that your credit card is the only option for just about any purchase.

    Whats in YOUR wallet???

  2. Schmee says:

    Fore some reson this does not surprise me. I used to work as a parking lot attendant in Milwaukee and alternatively we only accepted cash (even though depending on the lot and time of day fees could be as high as $25 for events) and I often had customers chew me out for not accepting credit cards.

    Whatever gets you more money I guess, The parking lot business is rather sleazy to begin with.

  3. JKinNYC says:

    Um. Get a debit/atm card?

  4. JKinNYC says:

    I should add that it’s not the super poor who declare bankruptcy, but more the middle class and up. Generally, those folks probably already have debit cards. And remember, declaring bankruptcy doesn’t necessarily mean you have $0 in the bank.

  5. homerjay says:

    @JKinNYC: I’m sorry, I forgot to add the tag “/sarcasm”

  6. JKinNYC says:

    @homerjay: My stuff wasn’t aimed at you :). I was just commenting on the assumption that people who declare bankruptcy would have no plastic form of payment.

    According to this link (pops) Over 2/3s of Americans have a debit card.

  7. FishingCrue says:

    Be careful with the term usurious, it’s a term of art with a specific (il)legal meaning.

  8. beyond says:

    Getting credit card offers in the mail after a bankruptcy is typical. Credit cards LOVE bankrupt people. They have a history of getting themselves over their heads (which means more finance charges for the bank), are more willing to accept horrendous terms and rates, and can’t file bankruptcy again for a long, long time!

  9. armour says:

    Humm I guess you could alway apply to the credetcard from the other story. $53 should be enough to park for the day

  10. NoNamesLeft says:

    Is this even legal not to accept cash? Its legal tender for all debts public and private..

  11. nelsonj1998 says:

    They can refuse service to you and if they refuse to let you park in their lot then you don’t have a debt to them to pay. Now, if they let you park and try to charge you on the way out, I’d think that then it is a debt and they’d have to accept cash.

  12. MENDOZA!!!!! says:

    Id: screw ‘em
    Ego: that’s unfortunate and sad
    Super Ego: the government should really step in and do something about this

  13. homerjay says:

    @NoNamesLeft: We had this discussion many moons ago and it turns out that yes, it is legal for them not to accept cash. Dumb, but legal.

  14. ms3e says:

    I hate to ruin an interesting story, but about this story’s premise of there being one garage and they only take cards is silly.

    I live near Manchester, NH where this court apparently is. There are also a couple other garages in the vicinity, and like most cities, there’s on-street metered parking if you can find an open spot. Realistically you’d probably have to walk 3 blocks, maaaaybe 5 at the most. See for yourself…
    [maps.google.com],-71.461601&sspn=0.010234,0.019741&ie=UTF8&ll=42.987933,-71.461687&spn=0.010234,0.019741&t=h&z=16&om=1

  15. ms3e says:

    @ms3e: Hmmm. Seems not to like Google’s comma in the URL. Oh well…

  16. Buran says:

    Don’t you often have to stop using your credit cards under court order if you are under bankruptcy protection?

  17. fashionista says:

    @ms3e:
    Walking 3-5 blocks (or more) to avoid costly cc fees and charges sounds like a perfect plan to avoid going down the path that got you in bankruptcy in the first place. (no pun intended)

  18. Bay State Darren says:

    Requiring those in debt to pay up…by acquiring more debt! Look, New ‘Amshuh, These people you’re doing this to: they’ve kinda already proven that this type of behavior is bad for them! This kinda like having an AA meeting in a bar during happy hour. A lot of them probably got into this mess by using their credit cards too much for your wonderful, magnificent tax-free shopping which is awesome. This is what a bankrupcy court should do only if it were aiming for retention.

  19. mrmaxmouse says:

    @Buran: You only have to stop using credit cards while your case is still pending. Once your debts have been discharged, you are free to take on any new debt.

    That is the point of bankruptcy. Discharge old debt so that you can start over. Now…while your case is still pending you can not get new debt. If you could, then it would be open for abuse. File for bankruptcy and buy as much as you can and get it all discharged soon. Even any debts that you’ve acquired in the 90 days before you file are considered non-dischargable.

    But once your case is closed and your debts have been discharged, you can start obtaining new debts.

  20. not_seth_brundle says:

    Let me piggyback on FishingCrue‘s comments and add that the word “receiver” also has a special legal meaning; it’s a person who takes over the estate of an insolvent person or company for the benefit of creditors.

    An individual who has filed for bankruptcy is not a “bankruptcy receiver”; he or she is a “debtor” (“debtor in bankruptcy” if you want to be more clear) or, in more archaic terms, a “bankrupt.”