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Barclays agreement with Arbitration question

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 If down the line I file bk and include a Barclays account after going thru the arbitration process, will it not be able to be discharged because of this section in their cc agreement? Do I try to stay away from arbitration if there is a chance I will need to file bk in the near future? This section has me so confused as to it's meaning. Can anyone give me an better understanding please?

 

 

This arbitration agreement applies to all Claims now in existence or that may arise in the future, and it survives the termination of the Cardmember Agreement and the Account relationship, including your payment in full, and your filing of bankruptcy. Nothing in this Agreement shall be construed to prevent any party’s use of (or advancement of any claims, defenses, or offsets in) bankruptcy or repossession, replevin, judicial foreclosure or any other prejudgment or provisional remedy relating to any collateral, security or property interests for contractual debts now or hereafter owed by either party to the other under this Agreement.

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No, you can still engage in arbitration and later file bankruptcy, if needed.

 

The reason the creditors put these arb clauses in their agreements is to avoid class action lawsuits.  Very few consumers turn the tables on the creditors by using arb as a defense in a collection lawsuit.  Now, the reason for this survival clause is to protect themselves (the creditor) against the class action  lawsuits even if a consumer has filed BK, terminates the account, or pays the debt in full.

 

Suppose that, sometime in the future, you want to sue the creditor for some violation of consumer laws.  But you have filed BK, or closed the account, or paid the account in full.   They put that clause in there so that, after you file the lawsuit, they will move to compel arbitration, and you can't argue that the arb clause no longer applies because there is no longer a contractual relationship between you and the creditor.  The arb clause survives the termination of that contractual relationship, whether that relationship was severed by closing the account, paying the debt, or filing BK.

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