QUESTION
Can I get a secured credit card while in bankruptcy?
Asked on Nov 22nd, 2013 on Bankruptcy - Texas
5 ANSWERS
Complex Litigation Attorney serving Costa Mesa, CA
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Thomas Vogele & Associates, APC
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There are really two issues raised by your question. You may apply and receive a secured credit card while your bankruptcy case is pending. However, there is no guarantee that you can be approved.
Answered on Nov 22nd, 2013 at 4:57 PM
In many cases yes, but many lenders will wait until after you've received your discharge which occurs approximately 60 days from your filing date in a Chapter 7. If you file chapter 13 you would need court permission prior to obtaining any new debts.
Answered on Nov 22nd, 2013 at 4:56 PM
It would be up to the creditor to decide whether or not to accept you as a customer. Nothing in bankruptcy law prohibits you from doing this. However, some Chapter 13 Plans prohibit you from taking out any additional debt and this could be an issue of whether or not the secured credit card is in fact a debt.
Answered on Nov 22nd, 2013 at 4:55 PM
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Yes, if you are in a chapter 13 then you need to get permission from the Trustee first. If you are in a chapter 7, then you can simply get the secured card.
Answered on Nov 22nd, 2013 at 4:54 PM
Bankruptcy Attorney serving Dallas, TX
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Polk & Associates
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Legally, you are allowed to get a secured card while in a bankruptcy case. With a secured card, you are funding it with your own money so it's more like a savings account than being a "credit" or "loan" transaction.
Answered on Nov 22nd, 2013 at 4:53 PM