Can applying for credit pre-discharge in a Chapter 7 result in dismissal?

[wellnowwhat]

Hi all,

My wife and I FINALLY filed Chapter 7 last month and had our 341 meeting a couple of weeks ago. We're very relieved to be at this point in the process, and according to our lawyer we're basically just in hurry up and wait mode until our discharge date.

One thing I'm curious about, however, is applying for credit before the discharge is complete. I'm betting this is generally not advised because most lenders will turn you down and it may damage your credit, but does it have any impact on the open bankruptcy case? Can the Trustee come back and deny your discharge for any reason if you do this?

The main reason I'm asking is because I've applied for a car loan (we're thinking about not reaffirming our current car but we need a vehicle), and a credit card (I am going to be traveling for work soon and would like to put my expenses on a card instead of using my checking account), and I don't want either of those things to prevent our discharge.

Any advice would be greatly appreciated.

[BobMango]

I can't say what may or may not happen in your case, but can tell you that I did receive a credit card before the discharge of my Chapter 7 and it had no impact on my case. For the most part the trustee is looking at a snapshot of your finances as of the date you filed, so most of what happens after is out of his scope. There are exceptions and if your case is border line on anything I'd certainly advise not bringing attention to your case.

[wellnowwhat]

I can't say what may or may not happen in your case, but can tell you that I did receive a credit card before the discharge of my Chapter 7 and it had no impact on my case. For the most part the trustee is looking at a snapshot of your finances as of the date you filed, so most of what happens after is out of his scope. There are exceptions and if your case is border line on anything I'd certainly advise not bringing attention to your case.

Good to know. Our case is a pretty cut and dry no asset case (Our attorney even said we handed it to the Trustee on a silver platter because I was so meticulous and obsessed about filling things out right), so I'm going to take that as a sign that I shouldn't be as worried as I am.

[Pjmax]

Don't know about a car loan pre-discharge, but it's difficult to be approved for a CC before, although it has been done from what I've read. If you absolutely need a card before discharge, and a debit card won't do it for you, look into a secured card.