Considerations

• Absent court approval, you are prohibited from obtaining a loan, any other new line of credit, or taking on new debt while in bankruptcy. A new credit card meets the definition of a prohibited line of credit.
  
  

Effects

• The effects of obtaining a new credit card while in bankruptcy potentially include a dismissal of your case, and a prohibition against filing a new case for a set period of time (perhaps as long as several years). The bankruptcy judge can also refer you for criminal charges.
  
  

Time Frame

• If the bankruptcy judge or trustee becomes aware of the new credit card after your case is completed, the court is still able to sanction you, including reopening the case for further proceedings, and a referral for criminal prosecution.
  
  

Prevention/Solution

• Although this is not common due to changes in the law, if you receive a new credit card on an unsolicited basis, report this fact to the bankruptcy court immediately. Turn over the credit card itself to the bankruptcy court trustee.
  
  

Warning

• Being accused of bankruptcy fraud is an extremely serious matter. If you face sanctions due to a new credit card, obtain an attorney to represent you.