Incuring debt waiting on discharge

[mcwjjm]

Live in Ohio. I'm awaiting my Chapter 7 discharge and was curious if it's a good/bad idea to incur further debt before my discharge. After filing I received a CC offer and accepting thinking why not start rebuilding my credit. My attorney never said anything about it but will this look bad on my pending case? Thanks.

 

[apie1]

If the trustee learns that you applyed for a new credit card while under bankruptcy, you may get into some trouble with that. Your trying to get out of debt, not build new debt. If your gonna apply for a credit card, your best bet would be to wait until your discharge goes through. Better yet, I would wait until your discharge goes through and your case is closed.

 

[mcwjjm]

What about an auto loan? If you included your only vehicle with your Chapter 7 is it reasonable you'd need another vehicle. That's not a luxury by any means.

 

[apie1]

Why go for an auto loan when you could just ask your lawyer if you could establish a reffirmation agreement with the car you have now? See what your lawyer tells you about that. If you try to get a auto loan after your case is done with, you would be looking at a 18% interest rate. Maybe even higher than that! Wait for others to post but as far as I know, thats what you would be looking at.

 

[bigun]

You won't get an auto loan until the bk is discharged. Sending a monthly bill or coupon book is collection activity and lenders want to see that discharge letter.
Apie is correct. The interest rate will be horrendous.

 

[mcwjjm]

Actually the Chapter 7 was conventient for unloading the car. I had a ton of miles on a leased vehicale and would have been hit big time if I kept it full term. So I included it with my other debt. Actually, I did get a car loan BEFORE my discharge. Yeah, the rate was very pretty but I didn't spend much either. Figure I'll keep it a few years and then fiance something else when my credit rating will give me a more favorable rate.