can you apply/get secured credit cards while still in chp13 plan?

[johnjan2009]

My chp13 plan is confirmed and just 2 mos passed. Now, I thought about rebuilding credit and apply for secured credit cards. I don't really plan on using my credit card and max it out but just to use for utility bills and pay it of every month to re establish credit. Perhaps I may need it later if there is a need for rental car/hotel/etc. Now, can I do this while still in chp13 plan? I don't see any documents from trustee or my atty sent to me stating I cannot apply for a new credit card but I would love to hear from you guys so please feel free to chime in with your opinions. thnx in advance...

-J

[jcj112562]

I know I could not "apply for ANY form of credit" without the approval of the trustee while in an active Ch13. You might want to ask your lawyer, but I am fairly certain that is standard throughout the system. Just my 2 cents...

John

[Nicollette]

I had to get Trustee approval for any new credit over $500.

[RichM]

I think you can apply for a secured card while in a 13, but can't let it "graduate" to an unsecured card without the UST's permission. At least, that's what I was told by a seminar speaker.

But he could have been wrong, so I'd check with your attorney.

-Rich

[johnjan2009]

hey guys, for those who stated you cannot apply for any type of credit, is this mentioned somewhere in your confirmation order? Or you were advise by your own attorney? Reason is I'm reading my confirmation order and no mention about I cannot apply for any new credit.. Anyone else has any thoughts on this? I just wanted a credit card(secured) in case I may need in future...

[jcj112562]

It is not in the confirmation order, it is in the "Debtor's Handbook", provided to me at my 341 meeting by the trustee. I will paste the applicable section below:

OBTAINING CREDIT WITHOUT PERMISSION.
Any credit purchase you make without approval is improper and
the Bankruptcy Court may require you to return the purchased
goods, may dismiss your case, or both. You will place your plan in
serious jeopardy if you obtain credit without prior approval.

Remember, during the ENTIRE term of your bankruptcy, any and all assets belong to the trustee, not to you. They might not look kindly at a security deposit (where did THAT money come from?) if you are not paying back 100% to your unsecured creditors. Of course, your mileage may vary, but you might want to look at the trustee's website, or better yet, ask your lawyer. You might get an answer you do not want to hear, but it should be the right answer.

John