QUESTION
Can I apply for a secured credit card while in Chapter 7 proceedings to begin reestablishing credit?
Asked on Mar 29th, 2014 on Bankruptcy - California
12 ANSWERS
Yes, but most creditors will want you to get a discharge first. In any case, you are permitted to get a card, if you so elect.
Answered on Apr 01st, 2014 at 3:33 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Yes, you can apply for any type of credit card while in a Chapter 7. Many banks will refuse to accept your account because you're a poor credit risk and because many institutions don't want to mess with any possible effects of the bankruptcy but there is no law against it.
Answered on Apr 01st, 2014 at 3:33 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Yes. You can enter into new lines of credit the day after your Chapter 7 is filed. You cannot secure it against property of the estate, but if it is a card where you prepay, there should not be any issues.
Answered on Apr 01st, 2014 at 3:32 PM
2 Awards
You can ask sure. There is no law that you are violating in doing so.
Answered on Apr 01st, 2014 at 3:32 PM
Debt Relief Attorney serving Anaheim, CA
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Marlin Branstetter Attorney at Law
Yes as long as the money you use to establish the account was listed and claimed exempt or you have earned since the filing.
Answered on Apr 01st, 2014 at 3:31 PM
Deborah F. Bowinski
You can apply any time you like, but I would probably suggest that you wait until you have received your discharge order.
Answered on Apr 01st, 2014 at 12:45 PM
Yes, you can apply for a credit card while in bankruptcy. In fact, after you file your case your mailbox will probably fill up with credit card offers.
Answered on Apr 01st, 2014 at 12:45 PM
Chapter 7 Bankruptcy Attorney serving Huntington Beach, CA
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Law Offices of Robert Parkinson Taylor
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You can apply. However, you mind find that no company will approve your application until after you receive your discharge and your case closes.
Answered on Apr 01st, 2014 at 12:45 PM
Yes you can and you should as that is the best way to reestablish credit.
Answered on Apr 01st, 2014 at 12:44 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Most probably a yes, but I would confer with an attorney to determine whether or not this is a wise and proper thing to do. If you do not have an attorney representing you in your bankruptcy, you should certainly engage one.
Answered on Apr 01st, 2014 at 12:44 PM
Complex Litigation Attorney serving Costa Mesa, CA
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Thomas Vogele & Associates, APC
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There is no reason you can't apply for such a card, however, don't be surprised if your application draws extra scrutiny because of your recent bankruptcy filing. A secured credit card from a reputable bank is a good way to re-establish credit.
Answered on Apr 01st, 2014 at 12:44 PM
Yes, I don't know if the creditor would approve you even though it is a secured card. The creditor may just want to wait until you get your discharge. You can definitely try though.
Answered on Apr 01st, 2014 at 12:43 PM