Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do: (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.

Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Has anyone been approved for a secured credit while in Chapter13?

  • Filter
  • Time
  • Show
Clear All
new posts

  • Has anyone been approved for a secured credit while in Chapter13?

    I've been on the plan for 12 months and decided to try for a secured card with a small deposit and was turned down. Has anyone had success getting a card and what company issued it?

  • #2
    I was able to get one through First Choice but they've since changed their name to Berkshire Bank.


    • #3
      I got an unsecured card in the 4th year of my Chap 13. I didn't use it until after discharge since I was not allowed to incur debt. Try Barclays.
      LadyInTheRed is in the black!
      Filed Chap 13 April 2010. Discharged May 2015.
      $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!


      • #4
        My attorney told me to get a secured card now. I filed in January. I applied for one through my credit union today. The underwriters called me today but I missed the call. So, not sure if I will get it.


        • #5
          I have had several offers in the mail but I am staying clear of them. I do not need them are want them now. I do not think it would look good to incur new debt while maybe some of my 13 debt may not be paid in the plan anyways.


          • #6
            Originally posted by newlife13 View Post
            My attorney told me to get a secured card now. I filed in January. I applied for one through my credit union today. The underwriters called me today but I missed the call. So, not sure if I will get it.
            Yeah, I got turned down. :-(


            • #7
              When we went to our Financial Class, they were VERY ADAMANT about NO CREDIT, NO PAYDAY LOANS, NO STUDENT LOAN CO-SIGNING period. I would hate to have had my Chapter 13 Dismissed for FAILING to FOLLOW their INSTRUCTIONS and possibly facing more legal and financial troubles. Ask your attorney thats why they get paid the big bucks! lol


              • #8
                We got one in our 2nd year from USAA . No annual fee. Limit is what you put in savings account.


                • #9
                  Originally posted by faithwolf View Post
                  We got one in our 2nd year from USAA . No annual fee. Limit is what you put in savings account.
                  I'm with USAA also, I was going to try the AMEX, I'm ok with the annual fee of $35. I'll give it a shot.


                  • #10
                    RetiredArmy - It's nice to read when others actually do what was told to us. After getting into BK why would anyone want to take on debt during the bk period.
                    Having said that a secured card is different, you can't use it unless you have put the deposit to pay for what you want/need.
                    Filed Chapter 13 - 07/20/12
                    Discharged 8/2/16


                    • #11
                      Originally posted by sophieanne View Post
                      RetiredArmy - It's nice to read when others actually do what was told to us. After getting into BK why would anyone want to take on debt during the bk period.
                      Having said that a secured card is different, you can't use it unless you have put the deposit to pay for what you want/need.
                      My attorney told me to get one. He said a secured card is completely fine and the first step to building positive credit.


                      • RetiredArmy
                        RetiredArmy commented
                        Editing a comment
                        Your attorney is providing incorrect information. I am not a "PAID ATTORNEY" but someone that is in the final phase of my Chapter 13 after trying unsuccessfully 3 times previously. Here in Nashville after the confirmation hearing, I was required to attend the Financial Readiness Class. It was at this class that my Wife and I were told MANY MANY MANY times that WE COULD NOT GET ANY TYPE OF CREDIT without the permission of the Trustee through our Attorney. We received a Certificate, Financial Planning Workbook and a Pamphlet that explained the ins and outs of our Chapter 13. Your attorney could care less because if you get caught you will probably have to use his services again after waiting 180 days and even then the Trustee may NOT allow the Chapter 13 to proceed. I had to purchase a car after getting into an accident that TOTALED the CAR. It was in the plan but I was upside down. My plan has paid the amount left over after the insurance paid the lien holder. I was approved to purchase a USED CAR within my current budget. I pay this outside of my plan with the permission from the trustee.

                        I wish you the best of luck and hope that you do not forfeit your Chapter 13 plan.

                    • #12
                      What baffles me is why would anyone want to pay a fee for someone to hold your money. Not judging, mind you, as I needed every dime I could squander to make things work and the annual fee could be used elsewhere. If your sole purpose for obtaining a secured card is credit, correct me if I'm wrong but isn't your credit rating pretty much in limbo until discharge or dismissal? I know mine was until getting close to discharge. I had plastic in the form of a debit card through the bank that was tied to my checking account during my entire bankruptcy and it cost me nothing. Absolutely couldn't use more than I had. Granted it did nothing for my credit and I realize that credit is important in this day and age but why try to rush things when you will be amazed at how fast your score will climb once your Chapter 13 is completed. 2 years post discharge and I was in the 800's, able to get a refi on my mortgage and credit card companies galore soliciting for my business, just like the good old days. I have one card that has an $18k credit line and no annual fee, that I never carry a balance and that is more than sufficient. If I learned one thing, it is that if I can't pay cash for it then I can do without until I can. So far so good. The only thing I might slightly consider going into to debt for is another vehicle. Knock on wood, with the occasional repair I have been able to keep my current vehicles quite reliable.
                      Filed 11/10/08

                      Discharged 2/18/14


                      • #13
                        newlife13 - Hi. I wasn't in any way criticizing you . I know your lawyer told you to apply and I know it's a secured card so it's one of those cards where you can only spend what you've paid in.
                        I'm just happy when people make it through without incurring more debt (just my own personal quirk). I hope you can get what you're looking for.
                        Filed Chapter 13 - 07/20/12
                        Discharged 8/2/16


                        • #14
                          The law that governs CHAPTER 13 and getting CREDIT while in AN ACTIVE CHAPTER 13 are quite clear in ALL 50 States and Territories. Not to be a blowhard but the LAW is the LAW. Read the paragraph "Making the Plan Work".

                          If an Attorney is telling their client that they can APPLY for a SECURED CREDIT CARD while their plan is ACTIVE and NOT DISCHARGED then the CLIENT is LIABLE and MAY have their case DISMISSED without getting a DISCHARGE.

                          Now, if you need to purchase a vehicle or have emergency repairs done to your home or vehicles, the trustee will normally approve the request as long as you show need and evidence. I had to get a replacement vehicle and asked for permission and was granted by my trustee while in my current Chapter 13.


                          • #15
                            I don't disagree that a debtor should not incur new debt while in a Chapter 13. I don't even disagree that, without minimally seeking advice from debtor's attorney, that a debtor's case may be dismissed.

                            However, there are districts that allow debtors to incur debt, without permission, from $500 to $5,000. The bankruptcy code doesn't contain any provision which specifically states that you can't incur new debt, as it only strongly discourages this practice in a round-about way. The Trustee relies on parts of the bankruptcy code that says that they must make sure that you'll comply with the plan and that you will pay. This includes keeping you from incurring debt because they must insure that any new debt won't affect the plan; which is the bottom line.

                            (Many people don't know that a Chapter 13 is technically a "pending" bankruptcy. Once the plan is complete, the bankruptcy is then allowed to proceed to discharge. During the pendancy, any new debt could be technically added to the pending bankruptcy's plan of reorganization. This can make things complex and wreak havoc on the existing plan especially when it comes to feasibility and payments.)

                            A person should always ask their attorney first as to whether they can incur debt and at what amount. If it exceeds the thresholds for that specific district, the attorney should tell the debtor that s/he will need to seek permission from the Trustee. I was allowed to obtain a secured card during my Chapter 13 as it was not "new" debt (needed it for travel). A person should also check their Chapter 13 plan to see what, if any, provision is provided since many new "model" plans cover this topic specifically.

                            Unfortunately each District seems to dance to the beat of their own drummer. Some are less strict and some even let you keep as much as $2,000 of a tax refund every year. It's just too difficult to keep up and to maintain a chart which lists which districts allow what; as such, I will always defer to the local attorney.

                            Always ask your attorney before incurring new debt (unless your plan specifically lists exclusions).
                            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                            Status: (Auto) Discharged and Closed! 5/10
                            Visit My BKForum Blog: justbroke's Blog

                            I am not an attorney. Any advice provided is not legal advice.


                            Unconfigured Ad Widget