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Just filed for Bankruptcy - CH7- need as many advice as possible :)

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TRC_WA
Senior Contributor

Re: Just filed for Bankruptcy - CH7- need as many advice as possible :)


@0REDSOX7 wrote:

Simply put, do not apply for any new credit until you have your discharge in hand - regardless what you read on here (and definately don't do it before the 341 meeting).

Start rebuiling with a discharge paper in your hand.


OP should read this again.

 

+1

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 11 of 20
Ro1204
Established Member

Re: Just filed for Bankruptcy - CH7- need as many advice as possible :)

I don't believe so....ch7 and ch13 have SOME different do and don't
Message 12 of 20
joelotto
Member

Re: Just filed for Bankruptcy - CH7- need as many advice as possible :)

Ron   If your thinking about getting Credit prior to discharge make sure you have an email or something from your lawyer saying it's ok and what the limit is for your state. If you do try for credit and with a low credit score I would only be looking at a secured cards(companies that don't pull credit or HP) from maybe SDFCU, USAA(pulled CR but still approved), or Open Sky. I was just dicharged from BK7 yesterday and so far I've had no issues from me getting credit while in BK.. I have 3 secured cards and I'm happy I got them as I still don't have a job and can't apply for new credit until I find one. All my secured cards will be three months old in the next week and when I get a new job they will be in the 4-6 months old opening doors for me to establish better credit once employed

Message 13 of 20
Ro1204
Established Member

Re: Just filed for Bankruptcy - CH7- need as many advice as possible :)

I am NOT advising ANYONE to apply for credit before discharge I am just saying the do's and don't for ch7 and ch13 is different. For example ch13 requires permission from the trustee before applying for new credit before discharge but ch7 does not.
Message 14 of 20
joelotto
Member

Re: Just filed for Bankruptcy - CH7- need as many advice as possible :)

The best thing to do is ask your lawer and getting proof of what he says.....I would have a good reason also!!!!! Like looking or interviewing for a new or better paying job and a CC is needed for travel expenses like Car rental and hotels

Message 15 of 20
TRC_WA
Senior Contributor

Re: Just filed for Bankruptcy - CH7- need as many advice as possible :)


@Ro1204 wrote:
I don't believe so....ch7 and ch13 have SOME different do and don't

As said,  if your attorney told you it's not OK for Ch 13 filers to open new debt prior to discharge but is OK for Ch 7 filers... You have been misinformed.

 

As others have also said, including the poster above you,  no new debt till discharge.

 

You asked in your original post if new debt prior to discharge was wise... And have been told by multiple people that it's not.  By all means though... Ignore our advice and listen to your attorney.  He's obviously telling you what you want to hear.  Smiley Happy

 

Regarding your recent reply... The rules ARE the same when it comes to debt before discharge.  Not going to argue about it though because your mind is obviously made up.

 

Good day.

 

 

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 16 of 20
Ro1204
Established Member

Re: Just filed for Bankruptcy - CH7- need as many advice as possible :)

You're missing the point...
I don't need to apply or want to apply for any credit card anytime soon. I am just saying there is a difference in the restrictions...that's all.
Message 17 of 20
joelotto
Member

Re: Just filed for Bankruptcy - CH7- need as many advice as possible :)

LOL  That's why as soon as soon as you file for BK7 you start getting letters from every major car dealer in your area to buy a new car even if you have not been discharged. All these companies are going to go out and get you a high % loan even if's against BK 7 laws.  LOL  just think about it...letters in mail saying you can buy a car even if not discharged, .My lawyer said it's OK, the trustee said it was OK but posters here say no in a BK 7.    Maybe I should ask what rule or law I broke getting credit prior to discharge here in California.  Show me in writing where it says a  no asset BK 7 case can not apply for credit prior to discharge.

Message 18 of 20
0REDSOX7
Valued Contributor

Re: Just filed for Bankruptcy - CH7- need as many advice as possible :)

I think the issue is that many trustees are by as forgiving as the one you have.

If your trustee says it is okay, then I would go ahead and do it.
BK Discharge 2/11/14

Currently in the garden.
Message 19 of 20
TRC_WA
Senior Contributor

Re: Just filed for Bankruptcy - CH7- need as many advice as possible :)


@0REDSOX7 wrote:
I think the issue is that many trustees are by as forgiving as the one you have.

If your trustee says it is okay, then I would go ahead and do it.

My point exactly.

 

The trustee isn't your friend.  He's looking out for your creditors.  If your attorney says it's OK and your trustee says it's not.... Who should you listen to?

 

If you're smart you'll listen to the trustee.

 

On the flip side if your trustee says it's OK then go for it... That still doesn't change what's written in the Bankruptcy Code.

 

Rather than posting a thread asking for advice the OP could have posted a thread letting everyone know his attorney said it was OK for him to take on new debt prior to discharge... In the end a lot of those who responded wouldn't have had their time wasted by responding with advice when the OP clearly wasn't looking for advice.  Smiley Happy

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 20 of 20
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