If you are in the process of filing for chapter 13 bankruptcy, you are not permitted to take out new credit during your plan. However, you can make exceptions based on emergency situations and special circumstances. Most bankruptcy trustees and districts have general guidelines for granting credit while your plan is pending. However, if you are applying for new credit during your plan, be aware that the bankruptcy court may view your unauthorized use of credit as an indication of your inability to fully adhere to the plan’s terms. The court may deny your request for new credit unless you provide proof of your claim. More info – scura.com
You Can Make Exceptions Based On Emergency Situations And Special Circumstances
As a Chapter 13 debtor, it is important to remember that you should not have too many unsecured debts. You should ask yourself, “Do I have any property that is worth less than my debts?” Unsecured debts include credit cards, utility bills, and loans from family members. Your bankruptcy documents will list these types of debt separately and in groups. If you have any assets that are worth more than your debts, ask yourself whether you can get rid of them through a Chapter 13 plan.
You will also need to inform your attorney and the Trustee’s office if you change jobs. In addition, you will need to file new paperwork with the Court to ensure that payments continue uninterrupted. If you are self-employed, you may need to make a monthly payment to your Chapter 13 Trustee. Your attorney will be able to help you with this process and make sure you continue to make your payments on time.
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