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Can I Get a New Credit Card While in My Chapter 13 Bankruptcy. – Rich

Written by Steve Rhode

“Dear Steve,

I am paying regularly on a Chap 13 plan and I’m about 2 years in out of 5. I have always been on time with this payment, my mortgages and cars. I have no other outstanding debts. I did accept a very low limit credit card just to use and then pay off every month. How do you think I stand credit-wise in terms of a car loan or lease or any other opportunity to establish credit more substantially.


Woman Whispers a Secret

Dear Rich,

Wow, that’s a tough one.

Unlike a chapter 7 bankruptcy where you can begin rebuilding your credit the day after your discharge, about 90 days after filing, with a chapter 13 bankruptcy you can’t till it is over.

Before you apply for any credit while in a chapter 13 bankruptcy you should discuss this with your bankruptcy attorney and/or the bankruptcy trustee and get permission first.

if you don’t the trustee could terminate your chapter 13 bankruptcy case and would not receive a discharge of your debts.

There are some limited reasons why you could apply for credit during a chapter 13 bankruptcy but you should ask for permission first in order to not have your bankruptcy protection terminated. Typically a genuine emergency or special circumstance are the only grounds that new credit during your chapter 13 will be approved.

When your bankruptcy is terminated you could follow this guide, How to Easily Rebuild Your Credit and Have Good Credit Again. If you no longer need the chapter 13 bankruptcy protection you could always end it early and get to work on rebuilding your credit now.

Please post your responses and follow-up messages to me on this in the comments section below.


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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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