Can I use my Macy's Card while in Chapter 13

[simon2020]

OK - so I am now confirmed at 100% plan.

I have a Macy's charge card that was at a zero balance 1 year prior to filing so they were never listed in the Ch 13 plan.

I have a nephew's first birthday coming up and I was wondering would it be ok to use the card (credit line still open) and buy him a shirt/pants that would be no more than $30.00?

I'll be able to pay it off next month - just want to know the risks of using an open charge card for this small purchase. So it's not like I am buying a new $1,000 flat screen TV without the trustees permission.

I heard somewhere if it's a small purchase, then it's ok - but anything over $500 I would have ask the trustee.

I don't want to get into trouble with my plan being dismissed for a tiny transaction.

[rrockinggramma]

most trustee's have a booklet or information on their website concerning the use of credit. My trustee allowed up to 1000 without permission. I doubt 30.00 would raise eyebrows.

[justbroke]

This is an EASY one.

NO.

With exceptions. If you're in a 100% plan, you may be able to. You need to ask the Trustee about this though. As pointed out, some Districts allow you to obtain credit under a certain amount without asking. My District is strict and we can't charge a penny.

I'm wondering if your Macy's card will even work. Some folks have used car account where they thought they survived filing, only to learn that the cards didn't work.

My core question, however, is why even use the card for $30?

[inevitable]

My core question, however, is why even use the card for $30?

No doubt

[simon2020]

It's a hypothetical question guys. I'll up it to $150 - does it change it now? lol Thanks for the replies anyway.

[justbroke]

It still comes back to two basic questions...

Does the Trustee and your District allow you to incur debt while in Plan?

Why would you charge $150 for a non-emergency?

[simon2020]

waiting for my paycheck.

birthday is this Sunday.

And you think you get it now right?

[justbroke]

And you think you get it now right?

I see the situation. Because I don't give legal advice, I can't say that it matters because I know nothing about what's in your Confirmation Order. Generally, there's a paragraph that addresses incurring new debt or credit while in a Chapter 13. If you don't have such a paragraph, or that paragraph just limits the amount of debt you can incur (such as no more than $500 requires no permission...), then go ahead.

I just don't want to see anyone on this forum, getting back into a bad situation.

[simon2020]

Hi justbroke -- ok I just read and re-read my confirmation papers and there is no paragraph stating any details about incurring new debt. The closest it came was if I wanted to refi my property I had to wait 36 months. The gist of my confirmation basically says this:

1. Pay x amount by due date
2. Pay on time
3. Turn in income tax forms and expenses once a year

And that's it.

Which leads me to another question:

Does this mean now I have to write down every little thing I buy with my debit card or cash into a Quicken program just so the trustee knew I bought a 99 cent burger at Burger King or are my bank statements good enough?

[justbroke]

That means you are good to go. I have no more questions. Charge if you so choose to charge.

You are not required to keep receipts for things. I don't and my confirmation has many more things including not to incur more debt.

I think the income tax and expenses may be related to a business or if you have a rental or something. I don't believe it's your "personal" expenses.

[simon2020]

Thanks for your opinions.

[indebt00]

I have to agree with others...I will be surprised if your acct is still open after a bk filing...and if you had other credit cards go bad on your credit before filing.

I had lots of good accts with zero balances that are not being included....but I know they are probably all closed....after my credit took a nose dive and all.

I would usually be the first one to say oh just charge the $30 or $150 no biggie.....but I am slowly learning....
that is what got me where I am now and I don't want to repeat this mistake. I don't want to sound lecturey but I am truly realizing what got me in this mess and I am trying to learn a new way of thinking. If you are relying on a credit card to get you through a tough time then nothing has changed...even if your paying it off next week. right?

[pcn]

If you are relying on a credit card to get you through a tough time then nothing has changed...even if your paying it off next week. right?

Amen. We've been "practicing" living without credit for the last 6 months. Haven't filed yet, but it is reassuring to know that we will be able to make it living on a cash basis.

[Flamingo]

Debt that you incur after filing is your own debt. If you decide to use your Macy's card, you are on your own and if it interferes with you being able to make your Plan payments and causes you to be late on your payments because you just don't have the money that was allocated at the start of your plan cause you incurred new debt, that's where the trouble starts.

I know what you want to do - you want to utilize the card now and then to keep the card open for future use and to stay open. I did the same myself with a Dress Barn card that survived our chapter 13 and I used it every six months or so making a small charge and then paying it off to keep it open. They even raised the limit for me once (note we filed in 4/02 and discharged 4/06). In November 2008 I went to utilize the card to make a $35 Xmas purchase and the card was denied - customer service told me it was due to a BK on my credit. Your card can be cancelled at any time for any reason (stated right there in your agreement). Don't expect your card to stay open and if it does for a while, it can get closed at any time due to your BK. So be prudent about the situation and don't start to rely on that credit card.

[Billssuck]

I haven't gotten my confirmation order yet but during our 341 we were told we couldn't incur more than $2,500 new debt without trustee approval. I was kinda surprised by that and I do not plan on incurring any new debt.