UPDATE 3-US credit card issuer Advanta files for bankruptcy

* Says Advanta Bank Corp not included in filing

* Advanta Bank capital below regulatory requirements

* Shares tumble to 8.5 cents (Edits, adds details from court filing, share price)

NEW YORK, Nov 9 (Reuters) - Advanta Corp ADVNA.O, a large issuer of credit cards to small businesses, filed for bankruptcy protection after the recession caused many customers to default on payments.

The Spring House, Pennsylvania-based company and more than a dozen affiliates filed for Chapter 11 protection late Sunday with the U.S. bankruptcy court in Delaware.

The filing excluded the company's Advanta Bank Corp unit and customers would still be required to make payments on outstanding credit card balances. Advanta said it is collecting its $2.7 billion portfolio of managed receivables from 360,000 customers.

The company also said its Advanta Bank's capital is below regulatory requirements and that the bank could turned over to a Federal Deposit Insurance Corp receivership.

Advanta said it decided not to fund the bank's capital shortfall to preserve value for other stakeholders.

In afternoon trading, Advanta shares sank 24.4 cents to 8.6 cents on the Nasdaq. The company said a Chapter 11 reorganization would likely involve issuance of new common stock to some creditors.