Are you able to open a secured credit card while you filed for bankrupt?

[sillyshydq]

If not do you have to wait the 7 years to get a secured card?

[TXskyblue]

It's 100% up to the lender, but yes you can.

[keepmine]

Getting any sort of card until the bk is discharged will be tough because, the creditor can't send a billing statement without violating the automatic stay.
Post discharge, your financial affairs are your own concern and you can apply for any card you please. You'll get numerous offers from subprime lenders for cards with outrageous fees.
Just take your time and you'll find some reasonable offers.

[sillyshydq]

what do you mean the " the creditor can't send a billing statement without violating the automatic stay."

[angel7821]

what do you mean the " the creditor can't send a billing statement without violating the automatic stay."

Creditors are not allowed to send a bill to you while your BK is active.

[sillyshydq]

Creditors are not allowed to send a bill to you while your BK is active.

Question what if the secured card was opened before you filed bankruptcy since the secured card can't be discharged in court won't I be able to still keep it open or dose the court system require me to close all accounts that are open? Also what is the rule for having checking/savings accounts?

[AngelinaCat]

Question what if the secured card was opened before you filed bankruptcy since the secured card can't be discharged in court won't I be able to still keep it open or dose the court system require me to close all accounts that are open? Also what is the rule for having checking/savings accounts?

I am not sure about a secured card, but almost all credit card accounts get closed, once your 'Suggestion of Bankruptcy' goes out to all of your creditors that you MUST list on your mailing matrix. Every now and then a poster writes that a card or two survived, but most do not.

Checking and savings accounts are okay, as long as there is enough of a state or Federal exemption to shield them. This also presumes that you have no other accounts such as your CC, loans, or whathaveyou, at the institution where your checking and savings accounts. If you do, these can be cross-collateralized, and your accounts drained by the institution if you default on a loan.

[kornellred]

If you have a secured card before filing for bankruptcy, the trustee will probably want you to shut it down and then confiscate the deposit. In any case, the deposit on a secured card is an asset that cannot be ignored in the bankruptcy.

[sillyshydq]

If you have a secured card before filing for bankruptcy, the trustee will probably want you to shut it down and then confiscate the deposit. In any case, the deposit on a secured card is an asset that cannot be ignored in the bankruptcy.

bummer what about once it's filed and I gone to court how many days after court hearing would I be safe or allowed to do secured cards? I just talked with my bank they said yes once you file they will get notified and will close the open lines of credit down once they get notified. They said though I would be approved after the court case.

[IBroke]

Getting any sort of card until the bk is discharged will be tough because, the creditor can't send a billing statement without violating the automatic stay.

Are you sure about that? AFAIK, the automatic stay wouldn't apply to a creditor who issued a card post-filing because any debt obtained would not be included in the bankruptcy in the first place.

[IBroke]

If you have a secured card before filing for bankruptcy, the trustee will probably want you to shut it down and then confiscate the deposit. In any case, the deposit on a secured card is an asset that cannot be ignored in the bankruptcy.

I had a secured card prior to filing, paid it off to a $0-balance, filed for CH7 and listed the deposit as asset. That worked like a charm..

[AngelinaCatHub]

bummer what about once it's filed and I gone to court how many days after court hearing would I be safe or allowed to do secured cards? I just talked with my bank they said yes once you file they will get notified and will close the open lines of credit down once they get notified. They said though I would be approved after the court case.

After your discharge is what they mean. Yes you can do most anything after discharge, but I don't know why you would. Personal choice I suppose. We have not used credit since our discharge and it feels so good not to owe anyone. Does your financial institution offer a debit card? Use it on credit side as there is more protection than using the pin. 'Hub

[LadyInTheRed]

Let's back up a moment. Your questions is not clear and you didn't provide all the needed information. Are you filing Chap 7 or Chap 13? You want to apply for a card after you file BK, correct?

If you file a Chap 7, the court doesn't care if and when you apply for a credit card. It's up to the creditor to decide whether to give you one. I think IBroke is correct that the automatic stay does not apply to debt incurred after the BK filing date. But, creditors are more likely to approve your application after the BK is discharged because if your BK is dismissed and you file another BK later, that debt will probably be dischargeable in the second BK. If you are getting a secured card during your BK, you need to make sure the funds you use to secure the card are not part of the BK estate (i.e, they are either exempt or from income earned after your filing date.)

If you file a Chap 13, whether you can incur debt during the BK varies by court, and even by plan. Some courts don't allow Chap 13 debtors to incur any debt at all without trustee and/or court approval. Some allow you to incur up to a certain amount of debt without approval. If the order confirming the plan is silent, a Chap 13 debtor should consult with their attorney before incurring debt.

[Pjmax]

If you are filing a Chapter 7, just wait until after discharge and avoid any possible headaches. If you can't wait 3 months before obtaining new credit, secured or otherwise, you have other problems BK isn't going to fix. Just my opinion.

[scuguy77]

Related question. What if while in Ch 13 you had a charge that was attempted to one of your cards (which was closed because of BK), it was accident because it was tied to an account. Charge was declined so no new debt incurred. Is this an issue?