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SUCCESS!! New card.


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Hey guys, I wanted to post a positive. After reading many posts, one of which was "which CC's after BK", I applied for a Kay Jewelers account.

2 1/2 years into repayment of a 5 year BK13, I got a $2000 line of credit! Awesome. Thanks for the great info and to everyone that keeps this site going.

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Congratulations, Rob!

I'm right there with you - a little less than 3 yrs. after Chapt. 7, right in that limbo spot - not a subprime mess anymore, but still not in the 700s and ready for prime credit. It's not great, but just think back to where you a few years ago and you'll realize how far you've come and how rewarding patience can be.

Enjoy your new credit!

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2 1/2 years into repayment of a 5 year BK13, I got a $2000 line of credit! Awesome. Thanks for the great info and to everyone that keeps this site going.

I was under the impression that a person cannot obtain new credit during the repayment period of BK13. At least that is what my lawyer told me.

Am I correct?

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I would think that the trustee would catch this in his annual review, or whatever he does, and raise a flag. I was told it would be grounds for dismissal if I even thought about it.

Would just getting a CC and not charging anything on it benefit your CR before the BK is discharged?

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There was never any mention of a review, not even at the hearing. I'm half way through and I haven't had a review.

They did say that I could not obtain any debt above $200 without approval.

The issuers don't seem to be having an issue with it.

My focus is walking away the after the discharge as if nothing happened. It looks like I might just get my way.

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Whether a review of your Plan was mentioned or not, it probably WILL happen. You could be in deep doo-doo for applying for new credit and incurring new debt WITHOUT THE TRUSTEE'S PERMISSION !! If you read the papers you should have been given by your lawyer carefully you should see this prohibition on new credit /debt.

You've had amazing success considering you're still in BK, but you could be in for a world of hurt if your case IS reviewed, and believe me, the Trustees DO do reviews for Plan adjustments.

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So are you suggesting that they pull a CR? I didn't see a inquiry from when I filed. Has anyone ever seen this?

Am I the only one out there applying and getting credit during repayment?

Anybody?...

Well I guess one or two things will happen. One they won't know. Or two they'll dismiss and I'll have to pay everybody in full. I'd prefer the first since it seems to be working out for me.

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Well, my parents, my in-laws, and my aunt & uncle (sounds great doesn't, two were because of failed businesses) went through BK13. None were allowed to obtain new credit. My parents had a 4 year plan, and there was re-worked after 2 years because of some income changes (had to pay more). My in-laws have been in 14 months and just got a "review". Don't know about my aunt & uncle, was a while ago. But count on it. And for sure you are NOT supposed to be getting new credit without good reason and without express permission from the trustee.

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Well I guess that's where the confusion is. As far as a "review" - it makes sense. It's the trustee's job to make sure that you can make the payments and that he is being fair to the creditors.

However what nobody has said here is whether or not they pull a CR. It seems to me that during this review they probably ask you questions, look at pay stubs and if you are self-employed - tax returns. I haven't been through one but that seems logical to me. Maybe someone knows first hand?

Short of pulling a CR, how would anyone ever know, meaning trustee, if you obtained new credit?

I can see how they would know if you changed your income and switched to a higher or lower paying job etc. and adjusted the payments accordingly. I get that.

But the million dollar question remains, do trustee's pull CR's? If so, I agree, I may be in for a world of trouble. If not, then well...

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Thanks, I appreciate the effort and the reply.

I'm sure that anyone going through a BK13 repayment would want to know this. It could mean the difference of waiting out the 3-5 year repayment plan and THEN starting over from scratch or getting a jump start and being able to walk tall once again right after the discharge and certainly even taller after the removal.

A 2 1/2 year good reported history at discharge could mean a great deal. 4 1/2 years at removal is huge. I don't think information like this should be snubbed. It may not be for some but others may be interested to know and want to take advantage of it. I know I do.

Thanks again.

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  • 9 months later...

If the trustee did pull a report how would it show new lines of credit. Some of the creditors don't mark that the account was included and some fail to report immedately unless you default. That leaves room to dispute it with the trustee. When I filed a ch13 I was told I didn't have to include all of my debt in the filing. I left a few CCs out of my 13, The trustee knew I was leaving them out and didn't say boo about CLIs or ask what the limits were, and 1 did raised my limit about 2 weeks after filing. Shortly after, about 2 months they closed the account on me because of the filing, not because they were included but just because I filed. Providian! Now my report looks pretty good and have some high limit cards, but I guess they blacklisted me. Applied and denied, reason they say was I didn't uphold my previous obligation to them. Was total BS, I had a zero balance when they closed the account on me.

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