Credit Card During Chapter 13?

[coit]

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.

Jane, my comment wasn't directed at you specifically, but yeah...

Sheeesh....

If you folks had put half as much effort into the point of the question, which is where to get a secured credit card, as you have in microanalyzing my posts in this thread, we would probably all learn a thing or two about secured cards.

Once again, for those of you that haven't been able to figure out what I am looking for, I'll make it as clear as I can:

I want a secured credit card with Visa/MC type travel benefits (rental car insurance, etc.).

If the card is secured, my understanding is that it DOES NOT report to the credit agencies. If it is secured, all that is at risk is the money I have backed it with. I am not being extended credit.

I'll say it again, SHEESH.

In reviewing old threads here, it seems that several vendors used to offer this card, including Orchard. However, when I follow the old links, the secured cards are no longer available.

This is a BIG deal to me with respect to my new job, and I would have hoped that the long time participants here would have some answers.

[jane taylor]

Must've just been grumpy yesterday.

Off hand I don't know of any secured credit cards. I would encourage you to talk to your attorney and trustee and let them know upfront what you need.

While I know that I can only control what I do and I don't know you, I really do care what happens to others. BK is stressful enough when things go smoothly. None of us needs additional stress.

jane

[helpless]

Secured credit cards do report to the credit agencies. That is why alot of people get them when they first get out of bk because they need to get a positive line of credit.

[opleeeeze]

I beg to differ with most of you on the reply here.
YOU can get a credit card without the trustees knowledge. I don't know if it is different in each state but in Virginia you can get one up to 2,500. If you want a higher amount you have to go through the trustee.

I have a Visa card with Captial One. It is not secured. The interest rate is about 14%. I keep it in case of emergencies. I do not use it for little things. If I use it I pay it off the next month.

I have confirmed this with my attorney several times before I applied for a card.

[nervousSC]

The thought of being able to get a credit card while in a 13 makes me quite nauseous.

[SinkingFast]

I beg to differ with most of you on the reply here.
YOU can get a credit card without the trustees knowledge. I don't know if it is different in each state but in Virginia you can get one up to 2,500. If you want a higher amount you have to go through the trustee.

I have a Visa card with Captial One. It is not secured. The interest rate is about 14%. I keep it in case of emergencies. I do not use it for little things. If I use it I pay it off the next month.

I have confirmed this with my attorney several times before I applied for a card.

I beg to differ.

It is different in different places. How different Trustees handle different situations.

The attnys where we live have all told us the only debt you can take on while in Ch 13 is a Home Loan and/or a Car Loan. Both AFTER you've been the plan for a year. And BOTH with the approval of the Trustee. That's the Law.

Attnys other places may be telling people otherwise, and Trustees other places may simply be looking the other way. But if you look at the actual BK Codes, that's what the LAW says. If you're doing otherwise, and there's a change in Trustees, you could get your butt caught in a noose.

So, I say again to Coit, the originator of this thread,............

If you want a PERSONAL CC, Secured or not, you're gonna need approval from your Trustee.

[aa06a47]

I beg to differ.
It is different in different places. How different Trustees handle different situations.
So, I say again to Coit, the originator of this thread,............
If you want a PERSONAL CC, Secured or not, you're gonna need approval from your Trustee.

I agree with SF, plus, if your moving to a new job that requires travel, 99.999999% of those companies either provide you a company credit card (which while it might have your name on it, it is in the company name, your just an authorized user for the company), or they provide the upfront cash to do the traveling. They also provide the insurance for the rental cars.

Coit, don't feel like it is a burdon for your new company to provide the credit card to you for travel / expense purposes. More than likely, your new company has run the credit check and knows that you have filed BK. If the company is a larger company, HR knows, but others don't know. If it is a really small company, HR knows, and maybe the guy that made the decision to hire you knows, but sure he was told not to say anything.

BK courts are Federal Courts, and only vary where the laws are ambiguous and up for interpretation. One judge may allow 401K contributions, others do not. But the Federal Law concerning obtaining credit during your 13 is specific and not ambiguous. It clearly states trustees can approve 2500 in credit, anything other than that goes before a judge. If your trustee allows you a $2500 credit card for business expenses, then get it in writing by filling out the proper form.

You don't want to take the chance of getting your case dismissed by not following the guidlines of the court. It is tough to get through this chapter 13 process especially when you have fallen into better times so to speak with a new job and such, but just don't forget the past obligations and duties you signed up to when you filed.

Have a nice day.

[bkbiker]

[coit]

I thought there was a good question asked earlier in this thread, has anybody here or do you know of everyone who have been reprimanded or case dismissed for using a credit card?

Yes it was, and is, a good question bkbiker. Unfortunately, there doesn't seem to be anyone participating in these forums that knows the answer to this question.

As you pointed out, the bankruptcy code indicates that substantial debt is not to be taken on. As you also pointed out, almost any family living in the US needs to have some line of credit available for minor emergencies. In my case, I seek to set the best possible example for my new employer by being able to cover my own short term travel expenses.

It seems that the usefulness of the CH 14 forum here ends once your case is confirmed. Then, its just pay pay pay until you've reached the end of your plan, if you so luck as to make it that far!

Good luck, and peace to you as well!

[SinkingFast]

Yes it was, and is, a good question bkbiker. Unfortunately, there doesn't seem to be anyone participating in these forums that knows the answer to this question.

As you pointed out, the bankruptcy code indicates that substantial debt is not to be taken on. As you also pointed out, almost any family living in the US needs to have some line of credit available for minor emergencies. In my case, I seek to set the best possible example for my new employer by being able to cover my own short term travel expenses.

It seems that the usefulness of the CH 14 forum here ends once your case is confirmed. Then, its just pay pay pay until you've reached the end of your plan, if you so luck as to make it that far!

Good luck, and peace to you as well!

Wrong Chapter of BK. To my knowledge, 14 doesn't exist.

Abusers caused the Law to change and put us all under the microscope.

And if you can't get the answer you WANT here then ask your attny.

Better yet,........ Ask your Trustee. Ask the Judge.

Ask the Court. That's who governs what you can and cannot do.

Since the Code is "ambiguous" and we don't all have your Trustee and Judge, then what we can or cannot do may not be what you can or cannot do anyway.

[quickteg]

My BK lawyer told me to wait for 18 months before getting a card. He said "You'll be inundated with credit card offers, they will all suck, but take the one that sucks the least and use it to buy gas for your car. Then pay it off every month."

I'm sorry if my "stupidity" gets anyone in trouble. The original poster asked about getting a credit card, I shared my experience.

Coit, just wanted to let you know that when I applied for my Orchard Bank cc, they gave me an option between secured and unsecured. Not all secured cards report to the credit bureaus. Some report to one, some report to two, some report to all three.

So if you are afraid that everyone and their brother will be pulling your credit report on a regular basis like some posters on this thread are saying, just make sure you get a secured card that does not report.

[heck-with-it]

I may be wrong, but I believe Minny was the one that jumped down his throat first. I think coit is well aware that he needs approval before getting a card. That was not the question he was asking. Why keep bringing it up? Maybe he will get approval, and maybe someone on here has as well, that can help out. Coit, you are right, some people, not to point fingers, post on every thread regardless if they are any help or not.

[BrianBlade]

There is no law against it...
So some of us don't know the real answer, I suppose.

http://bankruptcy.lawyers.com/ask-a-lawyer/Obtaining-Credit-During-Chapter-13-6710.html

[lrprn]

BrianBlade, it's against our forum rules to post to old, inactive threads like this. Far better to start your own new thread. Please keep this in mind as you get to know your way around the forum better. I'm closing this thread to further posting.