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Mistake-Could use some guidance, please

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ACDTJ
New Member

Mistake-Could use some guidance, please

I did something really stupid. I think, really stupid. Explored cc options in Credit Karma curiosity got the best of me, I applied and was approved for $2000 limit card. I don't even plan on using it. I'm currently in ch 13. 

Should I cancel it right away? Tell my attorney? (Mod cut - not here, please. Be mindful of the myFICO Forums TOS @ACDTJ) not use it?  My biggest fear is getting my plan thrown out. I feel sick. 

any advice is greatly appreciated. 

Message 1 of 7
6 REPLIES 6
Jnbmom
Credit Mentor

Re: Mistake-Could use some guidance, please

I am by no means an expert , but I believe you must have the BK trustee's permission before acquiring a credit card/debt .

 

I am sure others will chime in, but I suggest you contact your attorney and sooner then later .

EXP 780 EQ 798 TU 804
Message 2 of 7
ACDTJ
New Member

Re: Mistake-Could use some guidance, please

Thanks so much for the reply. I'm going to reach out first thing Monday AM 

Message 3 of 7
ashjt2011
Regular Contributor

Re: Mistake-Could use some guidance, please

Agreed. Ask your attorney and go from there. Mine told me to absolutely not make any financial decisions without contacting her. 

With that said, I asked her before starting my rebuild during my Ch 13 bankruptcy plan and she told me there was nothing prohibiting me from rebuilding/taking on new debt in my plan (although, it wasn't her recommendation to do so, and instead live by my budget- which I've done but am just using CC to pay expenses to build credit). 

Message 4 of 7
hoosier64
New Contributor

Re: Mistake-Could use some guidance, please

The road to discharge through Chapter 13 is a long one. Talk with your attorney and hang in there. My understanding is that different jurisdictions have different rules about opening new credit in Chapter 13. My attorney told me I could open a secured card if I paid it off every month in Chapter 13. I decided not to take my chances since the instructions from the Trustee said I could not open any new credit without permission. I'm just starting my rebuild, and so far it's going better than I anticipated, so I don't regret being cautious.

BK13 Filed: 4/19
BK Discharged: 10/22

Discover It Chrome: $4,700, Capital One QS: $5,000, Mercury: $4,050

Starting FICO 8 (10/22): 623 / 612 / 613
Current FICO 8: 691 / 677 / 685
Message 5 of 7
ACDTJ
New Member

Re: Mistake-Could use some guidance, please

Thank you. I had hoped to get a secure card (with permission) sometime soon. I don't even want this **bleep** thing. Thanks to you all for not skewering me; I'm doing enough of it for all of us. 


@ashjt2011 wrote:

Agreed. Ask your attorney and go from there. Mine told me to absolutely not make any financial decisions without contacting her. 

With that said, I asked her before starting my rebuild during my Ch 13 bankruptcy plan and she told me there was nothing prohibiting me from rebuilding/taking on new debt in my plan (although, it wasn't her recommendation to do so, and instead live by my budget- which I've done but am just using CC to pay expenses to build credit). 


 

Message 6 of 7
FLLGuy
Frequent Contributor

Re: Mistake-Could use some guidance, please

All BK attorneys and trustees are different to their respective locations.  

 

  • Some will be OK with opening new credit cards aware you'll have to rebuild as long as you don't carry a balance (very important). 
  • Some do not want you to open any new credit at all because credit seeking while in BK13 is frowned upon. 
  • Others may prefer you open secured credit cards. 
  • Finally some as you mentioned want you to STFU and lay low with 2 or 3 low limit cards.  

In summary, it's not the attorney that will crap on your parade but the Trustee is the one who is not your friend.  Some attorneys know their trustees well enough to know if they care or don't.  Point is, call and talk with your Attorney.  Personally my attorney didn't care as long as I didnt carry balances on smaller credit cards.  However, when it came time to replace house windows I had to submit a request to incur new credit $30K between me and my wife for Lowes, which trustee approved in 48hours without an issue.  




Message 7 of 7
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