Legal Question in Bankruptcy in Ohio

Auto Loans/Secured Credit Cards & Ch. 13

Web sites advertising automobile loans for those with past credit problems/bankruptcy often state under requirements, "...bankruptcy must be discharged." What does this mean--specifically for Chapter 13 bankruptcy? Also, is it possible to build some credit during a Chapter 13 repayment by using a secured credit card, or is this not allowed?


Asked on 11/03/99, 4:10 pm

1 Answer from Attorneys

Re: Auto Loans/Secured Credit Cards & Ch. 13

A discharge is granted at the end of a bankruptcy proceeding. It indicates that any debts not paid in full cannot never be collected from you by court proceedings. You are rebuilding your credit by making payments to your trustee. During a Chapter 13,you may NOT obtain ANY ADDITIONAL CREDIT without permission from your trustee. So a secured credit card is out of the question for now.

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Answered on 11/03/99, 5:43 pm


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