Financing during bankruptcy ?

[HHM]

I guess then in a 'no asset' case the point is mute.

I am not sure what you mean by that? All the "No Asset" designation means is that there are no non-exempt assets that will be distributed to creditors, but until the trustee abandons your assets or you are discharge, the trustee is in control of your BK estate.

[sharksfan]

That is true insofar as your BK estate is made up of all assets and liabilities that exist as of the date of filing, BUT, until you receive your discharge, you cannot take any action, i.e. get new credit, that could possibly injure that estate.

The time between filing and discharge is no mans land as far as the debtor goes. You can't do anything with your assets, incur new debt, or anything until you estate is administered and discharged.

I guess then in a 'no asset' case the point is mute.

[HHM]

The way I understand it is that your turn over your financial life UP TO your filing date.

That is true insofar as your BK estate is made up of all assets and liabilities that exist as of the date of filing, BUT, until you receive your discharge, you cannot take any action, i.e. get new credit, that could possibly injure that estate.

The time between filing and discharge is no mans land as far as the debtor goes. You can't do anything with your assets, incur new debt, or anything until your estate is administered and discharged.

[soleprop]

sharksfan, please post the code you're 'understanding' in this way? might help the discussion.

my input: HHM has it more right than you do, and i don't have the bk code to back this belief up, but i do know that the trustee has been assigned for a reason - and it isn't just to sort out your 'up to filing' financial situation but to look at your estate in total. if you can get credit from someone then who's to say you can't use that newly found credit to repay some of your outstanding debts that you've included in your bk? you're changing the equation; you're taking on new credit risk when you haven't resolved the existing. it's not good practice, in my opinion. but that's all this is: opinion.

[sharksfan]

The reason you cannot insure new debt "during" a BK is because you have "technically" turned over your entire financial life to the US trustee. During the pendency of your BK, the trustee is "legally" in control of your finances.

The way I understand it is that your turn over your financial life UP TO your filing date.

[HHM]

Thank you everyone for responding.


I am a little hesitant to mention any specifics here. I'm just a little afraid of maybe it could harm me some type away by doing so. So I do apologize for not giving more info.

Thanks again everyone !

Ok, if you don't want to give us useful info, than we can't help you. Good luck.

But, pleeezzzz, this is an anonymous forum. If you are planning on making a purchase of some kind, we can guide you. Regarding financing "during" a BK for a vehicle, what you are talking about is a 722 redemption loan. However, those are generally used to purchase back your vehicle from the trustee in the event you have non-exempt equity, they are typically not used for the purpose of buying a car during a BK.

[HHM]

I've seen a lot of "you can't get new debt prior to chapter 7 discharge". Can someone please point me to the section of BK code that this is written?

It depends on the nature of the debt, but yes, see section 523(a)(2) regarding exceptions to discharge with regard to no new debt "prior" to BK.

The reason you cannot incur new debt "during" a BK is because you have "technically" turned over your entire financial life to the US trustee. During the pendency of your BK, the trustee is "legally" in control of your finances.

[sharksfan]

I've seen a lot of "you can't get new debt prior to chapter 7 discharge". Can someone please point me to the section of BK code that this is written?

[cooper_monica]

Quick ?

I dont want to really get a major car not but there are alot of buy here pay here dealerships around that will allow u to basically pay off the vehicle in two payments or possibly over a months time. I have been trying to save up for a reasonable priced used vehicle, and saw a decent car today for 4400 dollars.

I have half of the money but I would need to make payments, how long does it take to get discharge papers in a chap 7 case, since most of these places dont check credit would it affect my bk if i chose to do this before the date. And if not does the info regarding discharge paperwork show up on pacer or should I just call to the help desk.

[Lacy]

Thank you everyone for responding.


I am a little hesitant to mention any specifics here. I'm just a little afraid of maybe it could harm me some type away by doing so. So I do apologize for not giving more info.

Thanks again everyone !

[AngelinaCatHub]

So I guess they might could throw your chapter 13 out then. Well some peoples income may change after filing for chapter 13. See know I'm wondering if that's something your suppose to report too.

No offense Lacy, but my concern and I have seen it in my own family and from personal history, too many people get debt removed and START ALL OVER AGAIN! If I ever get out of my 7, cash only, it truly is King. 'Hub

[Cali]

Lacy - in some areas they do have you report any increase in income. And you like it was stated earlier, you have to get permission in a C13 and you cant in a C7.

I would also suggest you telling everyone more about what your situation is. IT is hard to answer questions if we really don't know the background.

[Flamingo]

So I guess they might could throw your chapter 13 out then. Well some peoples income may change after filing for chapter 13. See know I'm wondering if that's something your suppose to report too.

In the event you are in a Chapter 13.....To be brief, you cannot incur any debt during a CHapter 13 without your Trustee's permission, car loans included. Most vehicle dealers know that and when they find out you are in a Chapter 13 they will advise you they need approval from the BK Court for you to take on that debt if you can be approved. Secondly, as to extra income after the filing of your Chapter 13, yes you are supposed to report it to your attorney who will advise the trustee if necessary. Some Trustees require all changes in income to be reported some only over a certain percentage. Your attorney will know what is required under your Plan and can advise you accordingly.

[keepmine]

So I guess they might could throw your chapter 13 out then. Well some peoples income may change after filing for chapter 13. See know I'm wondering if that's something your suppose to report too.

Instead of asking a lot of what if questions, why not just post the specifics of your situation? Are you presently in an active bk? Is it a 7 or a 13? Has your income changed since filing?

[Lacy]

It'll just raise the question of, where is the money coming from to afford a monthly payment. It'll throw the accuracy of your schedules into doubt.

So I guess they might could throw your chapter 13 out then. Well some peoples income may change after filing for chapter 13. See know I'm wondering if that's something your suppose to report too.