Greetings all, Longtime lurker and first time poster here. I must say this board has been a veritable goldmine of information, and I very much appreciate everyone's efforts. I do have a question for anyone familiar with Ch. 13 BK law: Is applying for and/or receiving new credit (bankcards, etc.)during the duration of a Ch. 13 plan, before dismissal, legal? I know the court must approve certain things related to your finances, but do I need permission to apply for or accept credit card offers? Any opinions or help would be great. Thanks
I think we do not suppose to get in any more debt until the BK is over. That's my understanding. Who follows the rules.
My In-laws just filed Ch 13 and they are not supposed to get any credit cards, loans, etc. until their 3 years are up. In fact, they have to notify the court if they wish to purchase anything over $500. Kelly
Well, if your trustee finds out that you got new credit without telling him, he could dismiss your filing right there and then for bad faith conduct. TomL
Thanks everyone. I still have 1 year on my plan, and have been deluged with offers for credit cards, mostly from Providian, Capital One, CCB, etc. Why would they send me these offers if I am not supposed to have any cards? Does the BK not show up on the infomation they use for soliciting new applicants? Or are they testing me? Hmmmmm....
They are money grubbing companies, who only want your money Since they are not breaking the law by giving you the card, i guess they think its alright huh? Its really on you, whether or not to abide by the law.
The marketing lists they receive from the credit bureaus usually just show the filing date of BK's. They have no way of telling if it's discharged or not. Save the offers for after your BK is discharged.
