8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 2, 2010

Advanta Corp.
(Exact name of registrant as specified in its charter)

Delaware	0-14120	23-1462070
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

625 West Ridge Pike, Conshohocken, PA	19428
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (215) 657-4000

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure

On November 2, 2010, Advanta Corp. (the “Company”) issued a press release announcing that it, together with certain of its subsidiaries (the “Debtors”), filed the Debtors’ Joint Plan Under Chapter 11 of the United States Bankruptcy Code (the “Plan”) and a Disclosure Statement related to the Plan (the “Disclosure Statement”) with the United States Bankruptcy Court for the District of Delaware (the “Court”), which is presiding over the Debtors’ chapter 11 cases (the “Chapter 11 Cases”). A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. A hearing of the Court is scheduled for December 2010 to consider approval of the Disclosure Statement. If the Disclosure Statement is approved, the Plan will be sent to eligible creditors for voting and, provided that the requisite approvals are obtained, the Debtors will seek confirmation of the Plan from the Court.

Copies of the Plan and the Disclosure Statement are available on www.advantareorg.com and copies will also be filed as exhibits to a Current Report on Form 8-K.

Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits.

(c) Exhibits.

99.1 Press Release issued November 2, 2010.

Limitation on Incorporation by Reference

In accordance with General Instruction B.2 of Form 8-K, the information in this Form 8-K furnished pursuant to Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Exchange Act or Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Cautionary Statement Regarding Forward-Looking Statements

This Current Report on Form 8-K contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The most significant among these risks and uncertainties are: (i) the ability of the Debtors to prosecute and consummate the Plan, including the risk that the Official Committee of Unsecured Creditors appointed in the Chapter 11 Cases or another third party objects to the Plan or the Disclosure Statement, or files a competing plan under chapter 11 of the United States Bankruptcy Code; (ii) risks associated with third parties seeking and obtaining court approval to convert the Chapter 11 Cases to cases under chapter 7 of the United States Bankruptcy Code; (iii) the ability of the trustees to execute and implement a confirmed plan in a cost-effective and timely manner; (iv) the Bankruptcy Court’s rulings in the Chapter 11 Cases and the outcome of the Chapter 11 Cases in general; (v) the length of time the Debtors will operate under the Chapter 11 Cases; (vi) the increased legal and other professional costs related to the Chapter 11 Cases, litigation and other legal proceedings; and (vii) the Debtors’ ability to maintain contracts with suppliers and service providers and to retain key executives, managers and employees. The cautionary statements provided above are being made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”) and with the intention of obtaining the benefits of the “safe harbor” provisions of the Act for any such forward-looking statements. Additional risks that may affect the approximate percentage recovery ranges for creditors are detailed in the Disclosure Statement, including Section VI of the Disclosure Statement which sets forth certain factors that should be considered prior to voting on the Plan.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Advanta Corp.                
(Registrant)

Date: November 2, 2010

By: /s/ Jay A. Dubow
Jay A. Dubow, Chief Administrative
Officer, Senior Vice President,
Secretary and General Counsel

EX-99.1

Exhibit 99.1

Advanta Expects To Repay Most of Investment Note and RediReserve Certificate Holders’ Money

Conshohocken, Pa., November 2, 2010 — Advanta Corp. (PINKSHEETS: ADVBQ; ADVNQ) announced today that it, together with certain of its subsidiaries (the “Debtors”), filed a Debtors’ Joint Plan (the “Plan”) under chapter 11 of the United States Bankruptcy Code and a Disclosure Statement related to the Plan (the “Disclosure Statement”). The Plan and Disclosure Statement have been approved by the Debtors’ Boards of Directors and are subject to the approval of the bankruptcy court. Among other things, the Disclosure Statement provides projections for the approximate percentage recovery rates for claims against Advanta including a recovery range of 64.4% to 100.0% for Investment Note claims and RediReserve Certificate claims, and a recovery range of 37.7% to 71.3% for General Unsecured claims against the Consolidated Debtors, as defined in the Plan. As previously disclosed, the Debtors anticipate that there will be no distributions to the preferred or common stockholders of Advanta Corp. nor continuing interest in Advanta Corp. (or any of the trusts formed under the Plan) on the part of the preferred or common stockholders.

This beneficial result for creditors comes about for a number of reasons including the fact that:

• The Company placed itself in bankruptcy at a time when it had approximately $100 million in cash and equivalents enabling it to preserve cash for creditors rather than having it dissipated.

• The Company was able to file its tax returns in a way that in combination with the successful resolution of ensuing litigation reduced a claim by the FDIC relating to Advanta Bank Corp. from $170 million to between zero and $50 million and provides for a potential recovery for the Company of $5 million.

• The Company was able to preserve assets as a result of successful litigation with the FDIC involving another banking subsidiary, Advanta Bank; and,

• The Company was able to secure control and transition servicing of a portfolio of credit card receivables that it owns.

“Because of these actions, Investment Note holders and RediReserve certificate holders, who are our largest group of creditors, could potentially recover all of their investment which has been a key goal of ours in these otherwise unfortunate circumstances,” said Dennis Alter, Chairman and CEO.

The bankruptcy court is scheduled to consider approval of the Disclosure Statement in December 2010. Once approved, the Plan will be sent to eligible creditors for voting. The Company anticipates approval of the Plan sometime in early 2011.

For a copy of the Plan and Disclosure Statement, please visit www.advantareorg.com.

About Advanta
Advanta Corp. has had a 59 year history of being a leading innovator in the financial services industry and of providing great value to its stakeholders, including its senior retail note holders and shareholders, prior to the recent reversals. It has also been a major civic and charitable force in the communities in which it is based, particularly in the Greater Philadelphia area.

This Press Release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The most significant among these risks and uncertainties are: (i) the ability of the Debtors to prosecute and consummate the Plan, including the risk that the Official Committee of Unsecured Creditors appointed in the Debtors’ chapter 11 cases (the “Chapter 11 Cases”), or another third party objects to the Plan or Disclosure Statement, or files a competing plan under chapter 11 of the United States Bankruptcy Code (“Chapter 11”); (ii) risks associated with third parties seeking and obtaining court approval to convert the Chapter 11 Cases to cases under chapter 7 of the United States Bankruptcy Code; (iii) the ability of the trustees to execute and implement a confirmed plan in a cost-effective and timely manner; (iv) the bankruptcy court’s rulings in the Chapter 11 Cases and the outcome of the Chapter 11 Cases in general; (v) the length of time the Debtors will operate under the Chapter 11 Cases; (vi) the increased legal and other professional costs related to the Chapter 11 Cases, litigation and other legal proceedings; and (vii) the Debtors’ ability to maintain contracts with suppliers and service providers and to retain key executives, managers and employees. The cautionary statements provided above are being made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”) and with the intention of obtaining the benefits of the “safe harbor” provisions of the Act for any such forward-looking statements. Additional risks that may affect the approximate percentage recovery ranges for creditors are detailed in the Disclosure Statement, including Section VI of the Disclosure Statement which sets forth certain factors that should be considered prior to voting on the Plan.

Nothing in this Press Release constitutes a solicitation of acceptance or rejection of
the Plan. Acceptances or rejections may not be solicited until a Disclosure Statement has been approved by the bankruptcy court.

Contact:
Amy Holderer
Advanta Corp.
215-657-4000
aholderer@advanta.com

10/02