I am in tears and need guidance incurred debt during chapter 13 without perm

[marly2014]

We are three years into our chapter 13 and everything has been going fine until last night. My husband thought he would start building his credit and took out a 250 dollar credit card. He has used it and I thought we couldn't incur any debt so I looked it up and it looks like I was right. I am in tears and shaking that the trustee will find out and dismiss our case. If this happens we will lose our house as the arrears are paid through the plan and we will not be able to make up the payments. I thought about paying it before the statement comes out and then closing it but has the damage already been done? I need to know what to do, should we tell the trustee or not. I am in NC and any one that has knowledge please help.

[klandsb]

Marly. This is what I would do . Close it ASAP. Pay it off and don't mention it ... I have read on here of people doing exactly what your husband did but for me its just not worth the risk . Take it as lesson learned and move forward...
During my 13 I used my bill me later account once of twice for a very small amount & paid it off very quickly. It was the only way I could pay for something I had bought on Ebay . Like your husband I didn't think much about it and when I realized what I had done the panic set in but nothing was ever said.

[marly2014]

Thank you for reply. I just can't understand why my husband did this. He really didn't know he couldn't. He thought for some reason anything under 500 was allowed. So I looked it up and everything is saying your case can be dismissed because of one mistake. I am so afraid the trustee will find and and then I get a motion to dismiss. I am going to do what you said and I pray nothing happens.

[kornellred]

If you have an attorney, it would be best to contact him/her. You will be advised with respect to a remedy.

[marly2014]

I wish I could feel comfortable asking my lawyer. When there was a government shutdown I called to let them know what was going on and what would happen if I was late and all I got was just wait and see if you get a motion letter and go from there. I really can't ever get a straight answer and I can never talk to the lawyer only his team. I just don't even try anymore.

[despritfreya]

Similar to klandsd, stop worrying. It's not like hubby ran up a $25k bill. Just pay off the small balance and hold the card for the future.

Des.

[spidge]

marly, I do hope you the best. I must add that it is out of your hands to an extent, so just do as suggested and pay it off to not use until after discharge. Take a deep breath and keep your payments current so the trustee does not look any further than your payment history. There are some missteps that I could get into trouble for but my attorney just keeps telling me to stay the course as best I can. There is no magic trustee discovery dust, so if they are not calling you out on it now it is unlikely it will be seen.

See no evil, hear no evil, do no evil.

Your OK. Breath.

I tell myself this over and over and over.

[LadyInTheRed]

Just adding to the chorus: pay it off right away and stop worrying. I can't imagine a case being dismissed for one $250 credit card charge. Don't cancel the card. Having a credit card is not the same as incurring debt.

[LadyInTheRed]

Just adding to the chorus: pay it off right away and stop worrying. I can't imagine a case being dismissed for one $250 credit card charge. Don't cancel the card. Having a credit card is not the same as incurring debt.

Just came across this again and had one important thought: Don't cancel the card, but do take it away from your husband and cut it up. He can get a replacement after you finish your BK, if he can use it responsibly.

[FullBoost]

Thats good advice!

I'm curious if there is a distinction when incurring debt? I had a kidney stone last year and spent 3 days in the hospital. I incurred about $2000 in debt that was my portion of the bill the insurance didn't pay. I was making payments to the hospital for about a year.

[LadyInTheRed]

Thats good advice!

I'm curious if there is a distinction when incurring debt? I had a kidney stone last year and spent 3 days in the hospital. I incurred about $2000 in debt that was my portion of the bill the insurance didn't pay. I was making payments to the hospital for about a year.

You definitely incurred debt. I suspect that if the trustee found out (a big if) and tried to get your case dismissed because of it, that a judge would likely take pity on you. In fact, I would hope a trustee wouldn't even move for dismissal in those circumstances. Remember, trustees and judges are human beings.

[dh7448]

I got a $500 card the last year of my 13. Used it a time or two and paid it off immediately. My lawyer said we could do that as long as we didn't carry a balance. I got it for online shopping, etc.

[lvmilizia]

Maybe it is a state by state think, but for the person above with the medical, I seem to remember reading something from the trustee saying that debt from medical bills was ok. I think it would be very hard not to have medical debt over a 5 year period, as you never know what is going to happen and you always have the piece the insurance does not pay.