Accrued PayPal debt with 5 payments till discharge

[Skipd395]

So the wife and I may have made a mistake by using PayPal credit with 5 payments remaining till our discharge. We didn't even think about as we were using it for Christmas for our children. We are up to date on all of our payments. How likely is it that this could cause issues ? I didn't even think anything of it until after the fact .

[justbroke]

No issues. I'm surprised that the account survived this long since major creditors, such as Synchrony, are notified automatically of a bankruptcy filing. Just make your payments.

(Additionally, in some districts--not mine--a debtor is allowed to incur up to $5K in debt during the pendency of their Chapter 13. In other words, some districts allow the debtor to obtain and use some credit. I don't know if your district allows that? Please don't rest on my statement about this. Just don't use credit.)

[Skipd395]

Thanks for your reply , that eases my mind some.

[Skipd395]

So do they not monitor credit during the course of the plan ? I haven't called the lawyer out of fear. Just hoping in 5 months this is all behind us

[justbroke]

So do they not monitor credit during the course of the plan ? I haven't called the lawyer out of fear. Just hoping in 5 months this is all behind us

No. They do not monitor your credit. If you call your attorney they'll just say "stop using credit!"

[Skipd395]

Lol gotcha, thanks again !

[Carmella]

I didn't have payments on PayPal, but my PayPal account was never effected, changed or limited during the BK 13. During the active BK we were only allowed up to $500 (each) of credit. I had used Klarna and Affirm, but that was usually less than $250 so I felt ok with it. Later I found out that those types of "creditors" do not report to the credit report. I also read they are great at selling off defaulted debt and I guess that's how they make money off the payment plans.

[Skipd395]

Thanks for your reply, i feel like as long as we keep making our payments we should be fine