Credit Card During Chapter 13?

[coit]

I've reviewed the various credit card threads, but I haven't seen anything specific to those of us in Chapter 13 plans.

What, if any, have you folks gotten during your plans?

I currently have a corporate card backed by my company, but that is going away when I change jobs soon. I need a card for business travel, but I'm concerned that my new company won't have a similar corporate card arrangement.

I need a card with typical benefits like Rental Car insurance. I would be happy with a secured card, as I can come up with the funds to back it to the necessary limit. However, all the links I've found for secured cards seem to not be available anymore.

A $300 limit card really won't do me any good. I'll need something with about a $1,500 limit to be practical.

Any suggestions?

[13inOR]

You are not allowed to take on any new credit without trustee approval, and I dont think they ever would allow a credit card. Sometimes you can buy a car, with restrictions, but thats about it. We just completed a chapter 13 and it was stressed quite clearly that we were not to take on new credit.

[FilingOnMyOwn]

You could do a secured card. However, one of my old roommates did successfully complete a chap 13, and by advice of his attorney he took on new low limit credit cards with relative safety. His attorney said the trustee would for the most part only be concerned about new debts that are large, and kind of gave him an unspoken rule of keeping new credit lines under 1,500$. Hope this helps.

[Minnymouth]

If you need a cc for business expenses then the Trustee is going to expect it to be backed by the company you work for..... not your own credit status....

If the company you work for expects you to use your credit then get reimbursed, you need to discuss this with your attorney and trustee.... they may allow and set a limit (of course they will look at this often for unnecessary business expenses). You will not be able to use it for any personal expenses whatsoever...... It will have to be approved by the Trustee....

[quickteg]

I have about a year left on my ch. 13 plan. I applied for, and received cards from Orchard Bank and Hooters. I never asked my trustee for permission. Then again, my trustee is retarded, plus I'm on a 100% payback plan. Your mileage may vary.

[coit]

Thanks for the responses so far!

Just to reiterate, I'm not looking for advice about whether I am allowed to have a credit card, but rather to hear from anyone that has gotten a secured card RECENTLY that inclues rental car insurance.

I can't find any offers online.

Thanks!

[13inOR]

No, I havent seen any offers, and I think everyone was just trying to make sure you were aware that trustee approval is crucial, or your case could be dismissed. Some people arent always aware of that.

[quickteg]

The best I've done is the hooters card with a $1500 limit. BE CAREFUL though, my median credit score is 620, and the best they would give me is 28% interest!!!! But I've been using it for purchasing gas for my car (about $300/month) and paying it off every month so I can establish a nice trade line on my credit report. Also, you get hooters reward points for your purchases which I think will get you some free wings at Hooters when you earn enough of them. Boobs and chicken!

[Minnymouth]

When you get your cases "dismissed" by the Trustee for "obtaining new credit" during the bankruptcy process...............DON'T CRY TO THE WORLD - because you have to go back and pay all your debts in FULL completely.... with no chance of using the bankrutpcy process.

Trustee's can and do pull periodic credit reports on Chapter 13's clients......

If you want to take the "chance" - be our guest...... but don't lead other members to THINK that its okay to obtain new credit cards during the bankrutpcy process........

You are dealing with a Federal Judge, Fedeal US Trustee, and Federal Trustee....... this is not "little boys" court.....

I would hate to think another member who listened to you would have his case dismissed because of your stupidity!!!

MEMBERS BEWARE......
Minny

[jane taylor]

I almost had a cow when I learned my husband had applied for store credit and we are just getting started in a 13! Since I have been the only one who really talks to the attorney, he didn't know. He was trying to save 20% on a purchase and hadn't planned on using it, but I was still upset.

Now I need to call the attorney and make sure we don't get dismissed because of that. Probably not, but I refuse to let anything sabotage my success in this!

Boobs and chicken are not all that reinforcing to me. The former I have and the latter I can cook just as well as anyone!

jane

[danas15146]

I'm kind of new to this - just filed in April and have 341 next month. But I was under the impression that you were not allowed to obtain a credit card at all while in chapter 13. Our attorney said that we should contact him to get the procedure if we would for some reason we would need a new car during our plan and that may be able to be approved but I really thought that obtaining an actual credit card was a big no no and would lead to dismisal of our plan.

Not that it matters for me. To get a card if we could would be stupid. Need to concentrate on our plan payments and living expenses and not having the opportunity to get back into trouble with more debt.

[coit]

When you get your cases "dismissed" by the Trustee for "obtaining new credit" during the bankruptcy process...............DON'T CRY TO THE WORLD - because you have to go back and pay all your debts in FULL completely.... with no chance of using the bankrutpcy process.

Thanks for ignoring my request to stay on topic.

Point me to one person who has gotten in trouble for having a credit card for business travel during their Chapter 13 plan. I have a card now, and my trustee is aware of it, and it being for business travel.

I need to have a card for travel, and since I am starting a new job, I would like to be able to obtain my own, and not have to trouble my employer right off the bat.

I'm sorry that this has been so difficult for you busybodies to understand. However, I would think that one warning to the group about the danger of applying for credit while in a CH 13 plan would have been enough, but I guess some people have to butt their noses into every thread, even if they can't contribute to the point of the thread....

[aa06a47]

Thanks for ignoring my request to stay on topic.

Point me to one person who has gotten in trouble for having a credit card for business travel during their Chapter 13 plan. I have a card now, and my trustee is aware of it, and it being for business travel.

I need to have a card for travel, and since I am starting a new job, I would like to be able to obtain my own, and not have to trouble my employer right off the bat.

I'm sorry that this has been so difficult for you busybodies to understand. However, I would think that one warning to the group about the danger of applying for credit while in a CH 13 plan would have been enough, but I guess some people have to butt their noses into every thread, even if they can't contribute to the point of the thread....

coit, I think you out of line with this response. People are trying to help. If you feel upset when people try and give good advice even if it is contrary to what you want to hear, don't post it. We are all sharing private information, annomously though. This is a public forum.

If you have an arrangment with your trustee for business expenses, then go for it. However, everything I have read, including information handed to me at the 341 meeting, says NO CREDIT CARDS, using credit without courts permission can cause your case to be dismissed. (Don't think the cc's your BK on won't be checking credit reports from time to time. If the trutee don't catch it, I bet they will)

Trustee's are permitted to approve emergency credit for 1500 bucks. Amounts other than that must be approved through the court.

The main thing for everybody to realize here, and what Mini was saying,you cannot have a credit card in a Chapter 13, don't get one, you could get screwed if you do. ANY AND ALL CREDIT WHILE IN A CHAPTER 13 MUST BE APPROVED BY THE TRUSTEE, AND IF IT IS OVER $1500, IT MUST BE APPROVED BY THE BK JUDGE.

[SinkingFast]

I've reviewed the various credit card threads, but I haven't seen anything specific to those of us in Chapter 13 plans.

What, if any, have you folks gotten during your plans?

I currently have a corporate card backed by my company, but that is going away when I change jobs soon. I need a card for business travel, but I'm concerned that my new company won't have a similar corporate card arrangement.

I need a card with typical benefits like Rental Car insurance. I would be happy with a secured card, as I can come up with the funds to back it to the necessary limit. However, all the links I've found for secured cards seem to not be available anymore.

A $300 limit card really won't do me any good. I'll need something with about a $1,500 limit to be practical.

Any suggestions?

Thanks for ignoring my request to stay on topic.

Point me to one person who has gotten in trouble for having a credit card for business travel during their Chapter 13 plan. I have a card now, and my trustee is aware of it, and it being for business travel.

I need to have a card for travel, and since I am starting a new job, I would like to be able to obtain my own, and not have to trouble my employer right off the bat.

I'm sorry that this has been so difficult for you busybodies to understand. However, I would think that one warning to the group about the danger of applying for credit while in a CH 13 plan would have been enough, but I guess some people have to butt their noses into every thread, even if they can't contribute to the point of the thread....

You originally posed your question in a rather ambiguous way.

You said you currently have a Corporate CC for business use that your Trustee is aware of.

You said because you're changing jobs, you need to get a new Corporate Card, but you don't wanna trouble your new company. Now you want a personal card to have available for business use. That's much different than a Corporate Card.

Is the card you currently have a Corporate Card backed by your company?? Is that possibly why the Trustee has not objected to you having it?? Because ultimately, the financial responsibility for the debt lies with your employer and not you??!!

Have you or your attny approached the Trustee for approval to obtain a new, personally backed CC for business use??

You lashed out at Minny, but what you don't realize is there are people who come here that don't listen to their attnys, or the Trustee, or the Judge.

People who lurk and read, and possibly even current members of this Forum who have CC's while in an active Ch 13 payment plan. People need to know that is not OK to do.

Each person's case is different. You need a CC for business travel. Another person's car allowance is exempt from being counted as income because they need the car for business use. Trustees and the Court can and do make exceptions to the rules everyday on a Case by Case basis.

You need to approach the Court and see if you can indeed get approval for a personal CC for business use. If not, then you'll have to trouble your employer to get a Corporate Card for you.

[jane taylor]

I do not appreciate being attacked like this. It is none of my business what you do, but if you post it here, then you know others will read it.

I am way too busy to judge or care what you or anyone else does.