Can You Get a Loan During Chapter 13 Bankruptcy? What You Need to Know
Once you've filed for Chapter 13 bankruptcy, you're expected to avoid taking new debts while you focus on your court-ordered repayment plan. But sometimes, a loan becomes necessary (e.g., you NEED a car to get to work), and when that happens, you may be able to get a loan before your bankruptcy has been discharged.
Chapter 13 bankruptcy brings plenty of questions, and the Craig Black Law Firm has answers. When you call my office, I answer the phone personally to discuss your case. If you're considering a Chapter 13 filing, give me a call at 678-888-1778 or fill out my confidential contact form.
Getting a Loan During Bankruptcy
In Chapter 13 bankruptcy, you'll be set up on a repayment plan. That repayment plan typically lasts three to five years and is designed to help you get your finances under control. If, for some reason, you want to take out a loan during those three to five years, you'll need to get court approval first. Here are the steps to follow in the case of a car loan.
- Seek a car dealership willing to give you a loan.
- Contact your bankruptcy trustee: Every bankruptcy filer is assigned a trustee, and this trustee is your contact for all matters related to your filing. Your attorney will file a Motion to Incur Debt to the trustee, who will review it and ask for any supporting documentation necessary to make a decision.
- Attend a hearing: This step isn't always required, but you should be prepared to appear in person and explain why you need the funds and how you'll repay them.
For a necessary purchase, such as a car, the bankruptcy court will generally approve the request. The court will take a look at the reason for the loan, the amount you're requesting, and how you'll repay it.
How the Craig Black Law Firm Can Help
Requesting a loan during bankruptcy can feel daunting, but a bankruptcy attorney can help ease the process. The Craig Black Law Firm can take a look at your bankruptcy case and advise you on the best course of action. If you decide to proceed with your loan request, we can help you complete the paperwork and prepare for any in-person hearings.
If you're currently on a Chapter 13 repayment plan, the Craig Black Law Firm can help with any questions you have. Give me a call at 678-888-1778 or provide some details about your case using this confidential form, and I'll be in touch.