Secure savings loan from my CU while in a Chapter 13

[Anonymous]

I have about 22 months left to pay on my Chapter 13 and was told I could get a secured savings loan($500) from my Credit Union. I want to know how big a help this would be and if I pay off the 12 month terms early over several loans would all this be a help when I exit the bankruptcy.

[Anonymous]

Hi bikin57,

Welcome!

Just a question first.  I'm wondering if the CU offered the loan, or if the BK trustee approved the loan (or both)?  Or if your attorney weighed in on this?

IME, (and YMMV), any new loan must be specifically approved by the trustee or it'll likely result in a dismissed BK - which is not a good thing.

[Anonymous]

I had asked once about a secured Visa cad and was told no, but when I went back a few weeks ago and asked about a loan from my CU secured by my savings they said ok.

[Anonymous]

One question I had when I was told no on the secured card was how would the court know I had the new credit line. I've always wondered about this but passed because I didn't want to take the chance. That's why I checked on the CU secured savings loan first.