topic Chapter 13 Request to Incur New Debt.... in Bankruptcy

Chapter 13 Request to Incur New Debt....

Anonymous — Tue, 27 Nov 2007 19:09:38 GMT

Hi Everyone! I just found this forum this morning and think it's a Godsend to those of us who now find ourselves in a situation that, to say the least, is not one to be especially proud of. I filed a Chapter 13 in September 2005 (before the changes) due to a business failure. I had excellent credit and a high FICO score before. It was heartbreaking for me to do this, but at the time I felt I had no other choice. I was not behind on any bill, but knew it was time to take some action. In hindsight now I wish I had not filed BK, but I did what I thought I had no other choice to do. At any rate, I kept making "direct payments" on my mortgage, my home equity loan, and my car payment. There were 3 CCs....one never filed a claim and it is listed on my credit report as "charged off". There was one small personal loan ("secured"). What is being paid so far on this payment plan is my attorney (now paid off), the trustee of course, and the secured loan which is almost paid off. Then I suppose payments will begin to be made to the 2 CCs. The BK was for 42 months, so I still have about 18 months left. All payments to the trustee have been prompt....never late and never missed.

My car payment was a lease and it expires December 23rd. I'm in the process now of trying to get approval from the trustee to buy this car. I've found financing from a dealer who is willing to buy the car at the buy-out price and resell to me (at a high interest rate of course....15%). My question to any of you out there is: has anyone ever made application for and received approval from a trustee to incur new debt? Do they normally approve such requests?

Thanks! I hope to hear from someone soon!!

TexasLadybug

Re: Chapter 13 Request to Incur New Debt....

Tuscani — Wed, 28 Nov 2007 17:52:55 GMT

IMHO your best option is to check with the trustee about the possibility of buying a car. It's not strictly prohibited, you just need permission to incur new debt beforehand. If it's a necessity it's likely to be approved.

Re: Chapter 13 Request to Incur New Debt....

Anonymous — Wed, 28 Nov 2007 19:14:24 GMT

Hello, and thank you so much for your reply! It is a necessity.....I am a "young" 60, have no spouse, significant other, or children. The rest of my family is not nearby, nor would they be able to help anyway. I really, really need transportation, and I've had this car for 5+ years. I know its history....and its value. All I can do now is try.....and wait...and hope!

Re: Chapter 13 Request to Incur New Debt....

Tuscani — Wed, 28 Nov 2007 21:47:51 GMT

I am guessing it will not be a problem. Good luck and keep us updated!

Re: Chapter 13 Request to Incur New Debt....

Creditaddict — Thu, 29 Nov 2007 21:06:38 GMT

it shouldn't be a problem since you are currenlty paying for a car loan and this would be replacing it.

I'm in the same boat though, except I have a new car 2006 and I want a different one... my lawyer didn't seem to keen on the idea of submitting for a "different" car.

Mostly I want a "different" car so I can open a NEW auto loan OUT of BK and start building credit again!!! wonder if I can tell that to court!