OMG... approved for unsecured Crap1... 341 still 15 days away...

[bkdone]

I dont know much about chapter 7, but I'm wondering about the fraud aspect. It just seems wrong that you are asking for relief from your debts by recently filing BK, but then before the 341 meeting...you're already applying for new credit. That cannot be Ok!

Believe me, I honestly am not trying to be harsh, but it sounds very wrong...and illegal.

[sharksfan]

I want to see something in black and white on this topic. I have yet to find much of anything.

[wayne-o]

you may not find anything in black and white. and i dont feel like looking. but the valid point is...that your in essence telling the courts that you cannot pay your debts and but requesting new credit at the same time. im not judging...I filed as well. It just seems your trying to start over too soon.

[FLBK7]

Regardless of whether or not it is anywhere in black and white, it won't look good to the trustee. There you are already chomping at the bit for new credit when you haven't yet dug yourself out of the hole you are in.

Might not be the case, but that's how it will look. Especially if your trustee is an ahole. Why take that chance?

ep

I totally agree. When I filed, even under the old laws, my attorney told me straight out not to charge anything OR apply for any new credit at least until the 341. He also mentioned that ideally I should wait until AFTER discharge to do anything at all.

[bkdone]

I dont know much about chapter 7, but I'm wondering about the fraud aspect. It just seems wrong that you are asking for relief from your debts by recently filing BK, but then before the 341 meeting...you're already applying for new credit. That cannot be Ok!

Believe me, I honestly am not trying to be harsh, but it sounds very wrong...and illegal.

SORRY!! I meant to say illegal... I edited my previous post to reflect that! I agree with Wayne-O... That's the essence of what I was trying to say earlier.

[epiphany]

SORRY!! I meant to say illegal... I edited my previous post to reflect that! I agree with Wayne-O... That's the essence of what I was trying to say earlier.

I think we all knew that was a typo.

ep

[sharksfan]

legal insight please post as I have been unable to find anything.

[bkdone]

By posting here you have to accept whatever comments you get...whether you like them or not. Whether you feel your decision is morally right or wrong, people here are just stating the obvious... Everyone here is offering advice simply because you opened the topic to conversation. So, with that said, let's hope your 341 meeting goes well, and that your BK is smooth sailing. Just dont be shocked if your whole BK is dismissed for 'substantial abuse'...or if the trustee questions your intensions if your new credit card is found out. Good luck.

[cali girl]

I read that that only applies to BK13 filings...



Because I plan on owning a home again in 2-2.5 years. If I can continue my good credit after my BK7 filing for 24 months with low utilization and a nice mix of trade lines, I believe I'm going to put myself in a really good position. I just hope the housing market hasn't rebounded too much when I am ready to jump back in.

Oh dear, you sound like me. From what I got on this board - the housing market will still be going down, down, down well into December 2009. LOL

[CindyLou]

Well, I applied for and was approved through Orchard/HSBC for my first "post-filing" credit cards for both myself and my hubbie one month after filing.....I don't even remember if it was before or after my 341.

I didn't, however charge anything on them, except for the annual fee, until after discharge. Right or wrong, who knows....but I've been very happy with my credit repair.

I don't think anyone will really know or care about the fact that you opened an acct. But technically you aren't suppose to.

[bkdone]

cindylynnsmith... You would have filed under old BK laws, right? The laws have gotten much stricter, and most of the legislation is aimed at fraud preventions...

I have been researching it in the past few days due to Sharkfan's new approval, and those BK volumes are huge. But, under the topic of 'Debtors Duties' it does discuss obtaining new credit and how that is to be approved by the trustee first.

Again...my thinking is if you have to ask (because you believe it's wrong) then dont do it. Check with your lawyer or trustee or even the clerk at the trustee's office can help you.

[sharksfan]

I have been researching it in the past few days due to Sharkfan's new approval, and those BK volumes are huge. But, under the topic of 'Debtors Duties' it does discuss obtaining new credit and how that is to be approved by the trustee first.

This discussion is what I based my decision on to apply now:

http://creditboards.com/forums/index.php?showtopic=299523&hl

http://creditboards.com/forums/index.php?showtopic=217342&hl

[HHM]

I posted this in another thread so you might find it helpful. I think people on this board are responding to your "credit repair fever", and the reality that 2 months, in the grand scheme of things is not going to mater.

Ok, lets back up from the pissing contest for a bit.

The issue regarding BK and FICO scores is an issue of time. Your credit report uses the "filing date" as the start date of your BK (for purposes of the 7-10 year rule). Note, both chapter 7 and chapter 13 are treated the same in the formula. Since the fico score is a weighted algorithm, you can't really isolate one factor and predict how it affects you score, because each factor is weighted against the others.

Assuming you had perfect credit going into a BK, I suppose it is mathematically possible for the debtor to have a FICO in excess of 700 after 3 to 4 years. However, having a 700+ score only 2 years out from BK is not likely. It would probably take a very specific set of circumstances to allow a debtor to have 700+ soon after a BK. Having over 800 is unlikely as well, only because it very difficult to get over 800 in the first place. Keep in mind, the effect BK has on your FICO diminishes with time....once a BK falls off the report (if it was on your report for the full reporting period), you credit score only increases 10 points or less.

Thus, although it may be "possible" under a certain set of conditions, that planetary alignment is unlikely to occur for the average person.

Payment History and amounts owed, between them, account for 65% of your FICO score.

Payment History
Account payment information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.)

Presence of adverse public records (bankruptcy, judgements, suits, liens, wage attachments, etc.), collection items, and/or delinquency (past due items)

Severity of delinquency (how long past due)

Amount past due on delinquent accounts or collection items

Time since (recency of) past due items (delinquency), adverse public records (if any), or collection items (if any)

Number of past due items on file

Number of accounts paid as agreed

Amounts Owed

Amount owing on accounts

Amount owing on specific types of accounts

Lack of a specific type of balance, in some cases

Number of accounts with balances

Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)

Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)

Generally, the reason most debtors never see a score of 700 after BK for many years is that all their credit card accounts are listed as IIB, and not Paid as Agreed and it takes a long time to reestablish a credit "history" and have a greater proportion of accounts as Paid as agreed.

Incidentally, here is an interesting thread over at the Myfico forum discussing what it takes to get a score in excess of 760 http://ficoforums.myfico.com/fico/bo...hread.id=12673 I think once you read it, you will see that for most persons, seeing a 700+ fico score after a BK is unlikely for many years.

[2muchcc]

Thanks HHM! That is the exact information I have been looking for since considering bk. I find it very straight to the point and helpful. Was that information on a sticky? I think it is information anyone who is considering this could use. Thanks again.

[FreshLikeADaisy]

Sharksfan, just FYI, my trustee not only pulled my credit bureau, he had me sign a very broadly written release so that he could access whatever info he liked... which I gladly signed.

For what it's worth, I know you're looking for black and white "legal" references. But the law itself gives trustees a wide latitude in terms of what they can look at and how. One of the primary types of fraud the law was rewritten to combat was the practice of running up many lines of unsecured credit and then filing Ch7, even repeatedly, in a very blatantly dishonest manner. I am not saying you're doing this, or have even the slightest intention!!! But you should be aware that there is a chance your trustee may see your credit application so soon after filing in that potentially fraudulent light. I haven't looked at Title 11 in a couple of months, and I honestly don't know whether applying for credit during a Ch7 is in there or not, but the *idea* certainly is, in my opinion.

For myself, I have no moral opinion on what you did, you seem pretty open and forthright about it all and I have no doubt that you mean well. But you deserve to know that there is some chance that your trustee may not see it that way. I sincerely wish you the best. Good luck!!!