Yes, you can get a credit card while in Chapter 13, but you need permission from your bankruptcy trustee or the court before you apply. That permission comes through a formal motion, and approval usually arrives with conditions attached: a low limit, restrictions on what you can charge, and sometimes a requirement to pay the balance in full each month. Most people who clear this process end up with a secured card rather than a standard unsecured one.
Why Approval Is Required
Chapter 13 puts your future earnings under the trustee’s supervision so that enough money reaches your creditors each month over the three-to-five-year plan. The federal courts state the rule directly: a debtor “may not incur new debt without consulting the trustee, because additional debt may compromise the debtor’s ability to complete the plan.”1United States Courts. Chapter 13 – Bankruptcy Basics
The enforcement mechanism sits in 11 U.S.C. § 1305(c), which provides that a postpetition consumer debt claim “shall be disallowed” if the creditor knew or should have known that getting the trustee’s prior approval was practicable and approval wasn’t obtained.2Office of the Law Revision Counsel. 11 USC 1305 – Filing and Allowance of Postpetition Claims That risk of disallowance is why card issuers generally won’t extend credit to a Chapter 13 debtor without written proof of approval.
Your confirmed plan also requires you to submit future income to the trustee’s control as needed to execute the plan.3Office of the Law Revision Counsel. 11 USC 1322 – Contents of Plan A new monthly credit card payment can squeeze that budget, and most confirmed plans include a term expressly prohibiting new debt without approval.
How to Ask: The Motion to Incur Debt
The formal request is called a Motion to Incur Debt. Local rules vary by district, but the core is the same everywhere.
What Goes in the Motion
Pull together the proposed credit agreement from the issuer showing the interest rate, any annual fee, and the credit limit you’re asking for. Then write a plain explanation of why the card is necessary. Courts are looking for concrete reasons tied to completing the plan, not convenience. Vehicle repairs needed for your commute, required work travel that must go on a card, and medical costs are typical.
The heart of the filing is an updated budget showing your monthly income and expenses with the new payment already factored in. This proves the card payment won’t cut into the money reserved for the plan. Your attorney usually prepares the motion; some districts post templates on the court website.
Filing, Service, and Objections
Once filed with the clerk, the motion is served on the trustee and creditors with a stake in your plan. Those parties then have a window, often around two to three weeks depending on local rules, to file an objection. A creditor may object if the new debt threatens their recovery.
If nobody objects, many courts grant the motion without a hearing. Some judges want a brief appearance where you explain the need in person. Either way you’ll receive a signed order setting out the terms. Do not apply for or use the card until that order is in your hands.
What the Order Usually Restricts
Approval rarely comes without strings. The order granting your motion will typically include conditions meant to keep the card from becoming a new debt problem:
- A modest limit, often in the range of a few hundred dollars, aimed at covering specific needs rather than general spending.
- Category restrictions, such as fuel, groceries, or medical expenses only, with discretionary purchases prohibited.
- A requirement to pay the balance in full each billing cycle so interest doesn’t compound.
- Reporting duties, such as submitting monthly or quarterly statements to the trustee so spending stays inside the approved limits.
Violating these terms puts you in material-default territory. The trustee can move to revoke the credit privilege and, in serious cases, seek dismissal of the whole case under 11 U.S.C. § 1307(c).4GovInfo. 11 USC 1307 – Conversion or Dismissal
What Kind of Card You’ll Actually Get
Realistically, most Chapter 13 debtors who get approved end up with a secured credit card. A secured card requires a cash deposit that doubles as your credit limit: deposit $300, your limit is $300. That deposit acts as collateral for the issuer, which is why these cards are far easier to obtain with an active bankruptcy.
Trustees also tend to prefer secured cards, for a straightforward reason: the deposit caps your exposure. You can’t run up thousands of dollars in debt when the limit equals cash you’ve already set aside. Unsecured cards, by contrast, give the issuer a claim that competes directly with your existing creditors’ recoveries, and unsecured cards marketed to people with poor credit often carry steep annual fees and penalty rates.
If you go the secured route, make sure the deposit doesn’t come from money that should be flowing to your plan payments. The trustee will see it, and it will sink your motion.
The Emergency Exception
Section 1305(a)(2) allows a postpetition consumer debt claim for “property or services necessary for the debtor’s performance under the plan.”2Office of the Law Revision Counsel. 11 USC 1305 – Filing and Allowance of Postpetition Claims The legislative history gives examples such as car repairs so the debtor can reach work and medical bills.
This is not a green light to charge emergency expenses freely without telling anyone. The creditor still has to verify that trustee approval was obtained when practicable. But in a real emergency where getting advance permission isn’t realistic, this provision offers some cover for both you and the creditor. The operative word is “necessary.” A broken transmission that keeps you from your job qualifies. A faster laptop does not. If something urgent comes up, contact your attorney and the trustee as soon as you can, even if the charge has already been made.
Alternatives That Don’t Require a Motion
Before starting the motion process, ask whether you need a credit card or just a way to pay electronically. Several options work without court involvement because they don’t involve borrowing:
- A debit card linked to your checking account works everywhere credit cards do for point-of-sale and online purchases, and no credit is being extended.
- A prepaid card carrying a Visa or Mastercard logo lets you load funds in advance and use the card for online purchases, hotel holds, and rental car deposits.
- Becoming an authorized user on a family member’s existing credit card gives you a card in your name while the primary cardholder remains responsible for the debt. Since you aren’t taking on the obligation, this generally doesn’t trigger the approval requirement, but confirm with your trustee before doing it.
For many people in Chapter 13, a debit card covers most of what they thought they needed credit for. The motion route makes sense when you genuinely need to carry a small balance or when a debit card won’t work for a specific purpose like certain business travel bookings.
If You Skip the Approval Step
Taking on a card without permission doesn’t automatically end your case, but it creates exposure on more than one front. If the new payment causes you to fall behind on the plan, any party in interest can ask the court to dismiss the case or convert it to Chapter 7. Section 1307(c) lists a “material default by the debtor with respect to a term of a confirmed plan” as cause for that.4GovInfo. 11 USC 1307 – Conversion or Dismissal Because most confirmed plans forbid new debt without approval, using an unauthorized card is itself a plan violation.
Even if you keep making plan payments, the trustee can still flag the debt. Conversion to Chapter 7 means liquidation of nonexempt assets, which is exactly what Chapter 13 was set up to help you avoid. Filing a motion and waiting a few weeks is always the better path.
After the Plan Ends
Once you complete all plan payments and receive your discharge, the restriction on new debt lifts and you no longer need permission to apply for a card. The Chapter 13 filing itself stays on your credit reports for seven years from the filing date, so mainstream cards at competitive rates won’t be available right away.1United States Courts. Chapter 13 – Bankruptcy Basics A secured card used carefully after discharge, charged for a small recurring expense and paid in full each month, is a reliable way back into standard credit.