Credit Cards Obtained While In Chapter 13 Bankruptcy

**gabby2006** · 09-20-2006, 05:56 AM

I have a question that I have not seen asked before. When you are in a chapter 13 bankruptcy can you get new credit cards or is this considered fraud? Why I ask is that I did just that . I got 2 new credit cards while in the middle of a chapter 13 bankruptcy and now 3 years after the chapter 13 was dismissed and paid in full I need to file a chapter 7.I go next week to talk to a new layer about fileing but I dont want to be in trouble for anything. The layer I did have for the chapter 13 never said anything to me about what I could do and what I couldn't do. The only reason why I got them was because I thought it would help raise my credit score- well, I was wrong. any advise would help. Thanks

**soonermark** · 09-20-2006, 06:38 AM

are your new credit cards going to be included in the Chapter 7?????

**Mr. Knowitall** · 09-20-2006, 07:43 AM

You paid off a sufficient portion of your debt, such that you could presently qualify for Chapter 7? (And you meet the requirements of the Bankruptcy Reform Act?)

The credit cards could be a problem, as obviously you aren't supposed to be getting new credit during a Chapter 13 bankruptcy without authorization from the trustee. At the same time the credit card lender would normaly have run your credit report before issuing the card and thus should have been aware of the bankruptcy.

**gabby2006** · 09-20-2006, 08:43 AM

Quoting Mr. Knowitall

You paid off a sufficient portion of your debt, such that you could presently qualify for Chapter 7? (And you meet the requirements of the Bankruptcy Reform Act?)

The credit cards could be a problem, as obviously you aren't supposed to be getting new credit during a Chapter 13 bankruptcy without authorization from the trustee. At the same time the credit card lender would normaly have run your credit report before issuing the card and thus should have been aware of the bankruptcy.

yes, I was going to include them because basicly this is the reason for the bankruptcy 7. I am in debt now $17,000.00 with judgements already in place and I am not working. I have paid the chapter 13 off in full - wouldnt that qualify me to file a new chapter 7?

**gabby2006** · 09-20-2006, 08:47 AM

During the chapter 13 I was going to turn it into a chapter 7 but theattorney who was paid in full to handel the case left the practise and could not be found. when I cointacted the trustee i was sent a letter from his office and was told to never contact him again so i was lost with what to do so i continued tokeep paying until it was so in full .

**gabby2006** · 09-20-2006, 03:47 PM

You answered part of my question now here is the rest... If I do qualify for a chapter 7 bankruptcy will I be in some kind of trouble for aquiring credit cards during a chapter 13? I did not contact trustee as I was sent a letter by his office and was told not to contact him that i must contact my attorney. The attorney left the practise and was never to be heard from again but he continued to get paid in full for his services.

**Mr. Knowitall** · 09-20-2006, 04:18 PM

I don't know for sure. If I were a lender and found out that you didn't get permission from the trustee before getting the cards and incurring new debt, I would do my best to have the credit card debt excluded from the bankruptcy. This is something to discuss with your bankruptcy lawyer.

**soonermark** · 09-22-2006, 06:38 PM

I'm sorry but I have to putmy 2 cents in here. I am sure you are a wonderful person, however my ex is smack dab in the middle of a Chapter 13. Since she filed there have been numerous attempts to get the case dismissed by the trustee, however her attorney has fought hard to keep that from happening. In the past few months she has acguired more credit cards and is charging them up to the max. I have 3 children and all of them know of her BK and her new credit cards. What is this teaching our kids? My wife and I have 1 vehicle to share, live in an apartment and barely scrape by, all while my ex keeps asking for more and more money from me whild her and her soon to be ex drive new cars, own their own home and continue to rack up credit card debt. If I had my way, Bankruptcy would be scrutinized more carefully and people who fail to learn their lesson the first time would not be allowed to file again. And we wonder why credit card interest rates are so high? My compassionate side hopes you do not get in trouble but the practical side of knows that you knew what you were doing.