I incurred a debt while in Chapter 13, but didn't know that I wasn't allowed. What happens to that debt now? I know now that I did need to get court permission to incur the debt, but didn't.
Thank you.
Thank you.
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What is the debt and what state are you in?
Bottom line, you are on the hook for whatever terms you agreed to. If that's what you're asking.Attorney Retained/Paid: 1-4-10
Online CCC-Completed & Cert Received: 1-8-10
Filed Chapter 7 1-18-10.
341 3-10-10 ~~~ Last Day to Object: 5-10-10 -
This is why I encourage everyone to read the little booklet that you get from the court after filing. It is filled with "do's and don'ts".
I would call your attorney and fess up and take his / her advice as to what to do next.Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.Comment
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Theoretically, it should not be possible to actually incur a significant debt while you are in Chapter 13. For one thing, your FICO score is lower than whale waste, which should prevent major lenders from even talking to you. For another - you are either just getting by making your Chapter 13 payments, or you are among the more fortunate filers (like me) who have more than enough to live on and make the payments, in which case there is no need to incur further debt.
This is all circumstantial, mind you. The unexpected happens all the time. Sometimes, incurring debt is beyond your control. But any intention to incur debt while in Chapter 13 must be approved by the trustee. Unless the debt falls under the category of necessity, it will be denied. If you incur the debt anyway, you can look forward to your case being dismissed, the automatic stay lifted, and it's back to square one.
One more possibility - you can hope that the trustee never finds out.Comment
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