Secured Credit Cards While in Active Ch13?

[neracode]

Is it ok (legal) to try to obtain a secured credit card while in Ch13? Thinking that maybe getting a $200 card to pay for gas could help the scores while we weather the next 4 years of our plan. What say ye?

[shipo]

neracode, the answer is one which you will hear often in life, "It depends."

I think, but do not know for sure, Florida does allow, possibly with Trustee approval, some minimal amount of credit to be gotten. I'm sure justbroke will chime in here sooner or later; that's when you'll get a definitive answer.

[justbroke]

Generally, you need to seek permission in order to incur debt. While a secured card is not generally debt, you should run this by your attorney. I was able to get a secured card because I needed it for work and in the ordinary course of business exception.

[flashoflight]

I think it's fine. I have many thousands in open credit lines since the 13 started, but the trustee limit for incurring debt without motion $1k for me. Access to credit is not the same thing as incurring debt IMHO. I pay down the credit card as soon as the transaction posts. Besides, you're going to ask the trustee for forgiveness when the $200 secured becomes $2000 unsecured on its own automatically in six months? Or how about the Courtesy Pay limit at the CU? Nah... I didn't tell the trustee anything. Just leave it in the safe and use it once a year for a candy bar if you're worried. I got straight zeros on my credit report balance except $30 on one card and my refinanced mortgage, which I did get a motion to incur debt. And I did need the three post-BK revolvers to get a good enough credit score for that mortgage.