4 Credit Cards before Discharge.

[TRC_WA]

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@Scupra wrote:

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@6speed8 wrote:

TRC, let's have a beer and be friends..

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Yes, have a beer and be friends!

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Why of course!  That's actually where I'm headed... Discover has the 5% back on restaurants promotion thru the end of June... so it's my card of choice for appetizers and drinks at Happy Hour.

It's almost 5 o' clock.  

[Scupra]

It's 5 o'clock somewhere!

[Wizdog1]

I love beer and 5 o'clock happy hours, and my Discover Card of course.  OP, FYI, Chase monitored my credit report right up until discharge. I had a second home with them that I was able to sell right before 341, but I still owed them a lot of money on 2 cards. I had no idea until it was over. Good luck to you and welcome. You will find a lot of great advise here. You'll notice how diplomatic Scupra is and how matter of fact TRC is however the more you read you will see they both have done a great job rebuilding taking different paths. You are just beginning please take the advise given from the people who have been there before you, in their own way I believe everyone is here to be supportive and doesn't want you to have any issues being discharged.

[6speed8]

5 o'clock somewhere is right. Have one on me  

Ok I have related questions. Previous exchange aside and aware I took a chance in getting cards just before discharge. Why is it even a potential problem ? I guess I figured if I can get a car loan an hour after the papers were filed and had a case number, why would a credit card be worse ? Does it vary state to state ? Are there parameters in bankruptcy that say NO you can't get a credit card/car loan during this and the auto lenders are simply being predatory ? I have zero intention of going after a car anytime soon. See my post in the Auto Loan forum about that lol.

Thank you Wiz. I didn't take it any other way. That's why I joined up. When I saw the OP about getting cards before discharge, I related to it is all. I guess what's perplexing to me is how similar yet varied all the info I find is. Everything I read previous to joining up was "Wait and get a secured card."  Then using the Google lol, I ran across the "Chapter 7 to 700 in 24 months or less" on here, I was like whoah! DON'T get a secured card?

[TRC_WA]

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@6speed8 wrote:

5 o'clock somewhere is right. Have one on me  

Ok I have related questions. Previous exchange aside and aware I took a chance in getting cards just before discharge. Why is it even a potential problem ? I guess I figured if I can get a car loan an hour after the papers were filed and had a case number, why would a credit card be worse ? Does it vary state to state ? Are there parameters in bankruptcy that say NO you can't get a credit card/car loan during this and the auto lenders are simply being predatory ?

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AFAIK it has something to do with all your debt being discharged... regardless of whether or not it was included in your bankruptcy filing.  Go search the forums and you'll find a lot of "Oh no, I forgot about this debt when I filed Ch 7."

When I filed a 13 my attorney stressed "NO NEW CREDIT while under BR protection without prior permission from the trustee."  That means before discharge which in my case was 4 years after I filed.

I've seen a lot of people say "That doesn't apply to Ch 7 you are free to go get new cards before discharge" which I 100% do not agree with.  The BR trustee IS NOT your friend.  He's out for the best interests of your creditors... and if he catches wind of new unsecured CCs prior to discharge he can motion to dismiss the BR.

Will it happen?  Probably not.  Can it?  Most definitely.

A secured loan for a house/car or even a CC can be approved by the trustee but I don't see approval happening for an unsecured CC prior to discharge.  Why would it?  You are discharging thousands of dollars in unsecured debt... if I were a trustee I most definitely wouldn't approve you to go get more prior to your discharge.  (See the red part again)

[6speed8]

Thank you. I agree. Keeping my fingers crossed that my lawyer - who was aces all through this - didn't steer me down the wrong path.

[Anonymous]

My discharge is dated 6-15-15, my attorney said it OK to get a credit card. As long as you had your 341 meeting you are good. My attorney was a former trustee. So I apply a got a secure discover card and a opensky card.

[Anonymous]

All the cards are hitting my reports now I am laying low just a few more weeks to go. Hopefully now damage has been done. Thank you for the advice.

[Anonymous]

You welcome. You good. We paid these attorneys to much money to be giving us wrong advise. I told him, I needed cards to rent cars, because I let my car went back. He said My scores going be much better after the discharge. Only Chapter 13:filers need permission to obtain credit. Good luck on your rebuilding. Im wait 6 months for my 3rd card. Glad im in with Discover secured student card. Fico TU 492. Was denied regular so I tried the student version and was offer the secure card. Only had to show proof of bank owership. Waiting on card now.

[6speed8]

Spoke to my sister about this last night. She was a private banker for 25 years. Her thoughts are that with the number of people who've gone into bankruptcy increasing so much since 2008, maybe they've become a bit relaxed with obtaining credit this quickly because they want people back in the "productive member of society" category and spending money.

Side note. When I had my 341 meeting, at 48 years old, I looked like the youngest person in the room. I was 3rd called up to the trustee's table. The first was a couple that looked to be in their late 60's. Second was a woman somewhere between my age and that couples. The rest looked to be in their 50's and 60's as well. Sad...