Yes, you can get a credit card while in Chapter 13, but only if the bankruptcy court or your Chapter 13 trustee approves the new debt before you take it on. Federal law treats any credit you open during your repayment plan as a post-petition claim that needs oversight, and taking on a card without permission can get your case dismissed or leave you personally liable for the balance after your bankruptcy ends.
Why You Need Permission First
Chapter 13 lets you keep your property while repaying creditors through a court-supervised plan that runs three to five years, depending on whether your household income is above or below the state median.1Legal Information Institute (LII) / Cornell Law School. Chapter 13 Plan Every dollar of your disposable income is already committed to that plan. A new credit card payment competes with what you owe existing creditors, so the system requires approval before you add to your obligations.
Under 11 U.S.C. § 1305, a creditor can file a post-petition claim only for debt tied to property or services necessary for your performance under the plan, such as keeping a car running so you can get to work or covering emergency medical costs.2Office of the Law Revision Counsel. 11 USC 1305 – Filing and Allowance of Postpetition Claims The same statute forces the court to disallow the creditor’s claim entirely if the creditor extended credit knowing that trustee approval was available but was never obtained.3GovInfo. 11 USC 1305 – Filing and Allowance of Postpetition Claims
The U.S. Courts guidance states the practical 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.4United States Courts. Chapter 13 – Bankruptcy Basics The rule covers all new consumer debt, not just credit cards. Car loans, personal loans, and store financing go through the same approval process.
What Happens If You Skip Approval
Taking on a credit card without court permission puts two things at risk: your case and the debt itself.
The bankruptcy court can dismiss your case or convert it to Chapter 7 for “cause,” which includes a material default on your confirmed plan.5GovInfo. 11 USC 1307 – Conversion or Dismissal Unauthorized borrowing can count as that kind of default. If your case is dismissed, the automatic stay ends immediately, and every creditor you were holding at bay can resume garnishments, repossessions, and lawsuits.6Office of the Law Revision Counsel. 11 USC 362 – Automatic Stay
Even if your case continues, the new debt can survive your bankruptcy. Section 1328(d) states that your discharge does not cover a post-petition consumer claim under § 1305(a)(2) if trustee approval was practicable and you did not obtain it.7Office of the Law Revision Counsel. 11 USC 1328 – Discharge The language is mandatory. If you could have asked for permission and didn’t, you owe the full balance after discharge, and the court has no room to overlook it.
How to Ask the Court for Permission
The request is made through a document usually called a Motion to Incur Debt, filed with your bankruptcy court. The motion has to give the judge and trustee enough detail to decide whether the new credit fits within your plan. Most courts expect three things.
First, the specific card terms: the lender’s name, the proposed credit limit, the interest rate, and any annual fee. Rates for borrowers in active bankruptcy tend to run roughly 18% to 29% on unsecured cards, with annual fees commonly $50 to $100.
Second, a written explanation of necessity. Courts approve credit for genuinely necessary expenses like work-related travel, bills that only accept card payments, or emergency repairs. Requests framed around discretionary spending are routinely denied.
Third, updated income and expense schedules. You will need a current Schedule I (monthly income) and Schedule J (monthly expenses) showing your budget can absorb the new payment without cutting into what you pay creditors.8United States Courts. Bankruptcy Forms If your finances have shifted since you first filed, the schedules need to reflect current numbers.
Motion templates are available on your local bankruptcy court’s website; fields vary by district. Many debtors have their bankruptcy attorney draft and file the motion, with fees typically running from a few hundred dollars up to around $1,000 depending on complexity and local rates. The motion itself is not listed on the federal miscellaneous fee schedule for bankruptcy courts, so there is generally no separate court filing fee.9United States Courts. Bankruptcy Court Miscellaneous Fee Schedule
The Approval Process Step by Step
Once the motion is ready, the sequence is predictable:
- File the motion electronically through the bankruptcy court’s system.
- Serve a copy on the Chapter 13 trustee and any party that has requested notice in your case.
- Wait through the notice period. It is often 14 days, though some districts allow up to 21, giving the trustee and creditors time to file written objections.10US Courts. Order – Case No. 5:16-bk-03043
- Attend a hearing if one is set. With no objections, the court may grant the motion without requiring you to appear. If the trustee or a creditor objects, the judge schedules a hearing.
- Wait for the signed order. Do not sign any credit agreement or use a new card until you have a signed order from the judge authorizing the debt.
If the lender’s terms change between filing and the order, you may need to file an amended motion with the new numbers. Keep a copy of the signed order in case you need to prove later that the debt was authorized.
If the Court Denies Your Motion
A denial is not final. You can refile with a stronger justification, a different card with better terms, or additional evidence that your budget supports the payment. You have the right to appeal to the district court or the bankruptcy appellate panel if you believe the denial was legally wrong, but the cost and time involved rarely make sense for a credit card request. The practical move is usually to address the court’s specific concerns and try again.
Local Rules and Dollar Thresholds
The federal Bankruptcy Code requires trustee consultation for all new debt, but individual bankruptcy courts add local rules that shape when a full motion is necessary. Some districts set a dollar threshold. One court’s local rule, for example, requires prior court approval only for new debt of $10,000 or more, with smaller amounts needing only trustee consultation.10US Courts. Order – Case No. 5:16-bk-03043 Other districts have no threshold and require a motion at any amount.
Before filing anything, check the local rules for your specific bankruptcy court and confirm the process with your trustee. Informal trustee approval may be enough for a small secured card in some districts; others demand the full motion regardless of amount. Your attorney or the court clerk’s office can tell you which applies to your case.
Secured Cards and Cards That Don’t Require Approval
Even with court approval, most major issuers will not extend an unsecured credit line to someone in active Chapter 13. The realistic path is a secured credit card, where you deposit cash (typically equal to the credit limit) and borrow against your own money. Because you are not taking on debt in the usual sense, trustees and courts tend to be more receptive to these requests. Secured cards report to the credit bureaus the same way unsecured cards do, which makes them useful for rebuilding credit history during the plan.
If the goal is just making electronic purchases like paying bills online, booking travel, or shopping, a debit card tied to your checking account or a prepaid card does the same job without creating debt. Neither requires court approval because no borrowing is involved. They don’t build credit, but they don’t put your case at risk either.
How a New Card Can Change Your Plan Payments
Adding a monthly credit card payment changes your disposable income, which is what determines how much you pay creditors each month. If the new payment reduces what you can contribute, the court may require a plan modification under 11 U.S.C. § 1329.11Office of the Law Revision Counsel. 11 USC 1329 – Modification of Plan After Confirmation A modification can adjust payment amounts or stretch the timeline, but the total plan period cannot exceed five years from when your first payment was originally due.
The debtor, the trustee, or any unsecured creditor can seek a modification at any time before payments are complete.11Office of the Law Revision Counsel. 11 USC 1329 – Modification of Plan After Confirmation Even after the court approves your card, the trustee can come back later and ask to adjust your plan if the new debt looks like it is undermining your ability to pay creditors. Keeping your balance low and your payments consistent is the best way to avoid that outcome.