After the 341

[HangingOn]

The 341 has come and gone but nothing is on pacer. How will I know when the 60 day count starts? Also, if I got a loan now can the trustee take it? It's actually my husband that is filing.

[lrprn]

The 341 has come and gone but nothing is on pacer. How will I know when the 60 day count starts?

I checked your earlier posts - when was your husband's 341?

Also, if I got a loan now can the trustee take it? It's actually my husband that is filing.

If your husband is the only one who filed (you are not included as a couple filing), he is not going to be a co-signer on your new loan, and you are taking the loan out after he filed, then I can't see how your husband's trustee could take your loan money.

[HangingOn]

Reply

My husband's 341 was June 18. Does the 60 day wait start from the 341, from when we filied, or from the discharge?

It would be a family loan so yes he would be a signer.


Thanks for your help.

[lrprn]

My husband's 341 was June 18. Does the 60 day wait start from the 341, from when we filied, or from the discharge?

Sixty days from the first date set for his 341 meeting which I assume was June 18.

It would be a family loan so yes he would be a signer.

Since your husband is in an active bankruptcy that has not been discharged yet, he is not allowed to take on new debt and so cannot co-sign on a loan without his trustee's permission. Has your lawyer (or your husband if he filed without one) gotten that permission?

[HangingOn]

Reply

No he hasn't received permission to take on more debt. Is a loan considered income? Once he's discharged does he need permission to co sign a loan?

[lrprn]

No he hasn't received permission to take on more debt.

He must have permission from the trustee to co-sign a loan if he's in an active bankruptcy case. The law is crystal clear that the filer cannot take on new debt of any kind until the bk case is closed.

Is a loan considered income?

It's not income, it's the new debt generated by signing for the loan without the trustee's permission that's the problem. This can get your husband's Ch 7 case dismissed by the trustee - it's that serious.

Once he's discharged does he need permission to co sign a loan?

Once your husband's case is discharged AND closed, he can do whatever he wants. However, understand that the few loan offers you may get with a recently closed bankruptcy are going to have a very high APR - upper teens % for sure.

I'm not being judgmental, just trying to be helpful. If your finances are so rocky at the moment that your husband has to file bankruptcy, piling on more debt with a loan right after filing to fix a ongoing money problem isn't the answer. If you haven't already, it's very important to take a cold, unemotional look at your family income vs. your family expenses. If after wiping out your husband's unsecured debt, you two still can't live within what you make, then filing bankruptcy isn't going to help your situation in the long run.

We've seen too many new filers here jump from the frying pan pre-filing back into the fire financially after filing by continuing to spend beyond what they make and getting back in the credit trap trying to fix things. Would love to help you avoid that trap if we can because we care.

[loonzilla]

What if you are settling with some creditors? My attorney said if that happens, it really doesn't matter where the funds come from. Easiest way for this would be 401K loan. As far as I can see, nothing about 401K loan is in credit report so how would trustee find out about that? For my case, 401K loan is not allowed to be included with schedules, so it wouldn't assist the case with respect to higher expenses. I guess general question would be this: Does trustee pull you credit report after you file to see if any new debt is added? If hanging one obtained a loan, what would be the checks and balances to prevent that? Not saying its the right thing to do, but it would be appreciated to understand the process to ensure someone doesn't obtain new debt during the case. Thanks!!