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  1. #1
    Join Date
    Jul 2007
    Posts
    2

    Default Incurred New Debt During Chapter 13 Repayment Plan

    I am at the tail end of a 60 month Chp 13 with 6 mo to go. I incured new debt of about $5600 this past year. I now know I was not suppose to do that without approval from the court. As of now, I don't believe anyone knows and I have not missed any chp 13 payments or new debt payments. I am now worried that if the trustee finds out somehow, I could be dismissed. Do trustees perform credit inquiries? If I were to pay of my plan in full, about $4675 remianing, would this new debt problem come up during the discharge? Or should I pay off the new debt fast as I can while paying the regular chp 13 monthly payment for 6 more mo. Any advice is much appreciated. Thanks - Very worried in Texas.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Incure new debt - need advice

    Do you have a bankruptcy lawyer? If so, consult your lawyer.

    You may be able to get away with this if you pay off the new debt and don't miss any of your Chapter 13 payments, but as you obviously know this was a foolish thing to do.

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Incurred New Debt During Chapter 13 Repayment Plan

    You are correct in that you should not have incurred any additional debt while in chapter 13 bk w/o consulting your attorney & the trustee. The implications of the debt vary depending on whether the debt was for non-emergencies, emergencies, an auto, support obligations, or income taxes.
    Do consult your bk attorney (if you have one). As the other poster indicated you *might* be ok if you can manage to pay off this new debt & keep up your bk payments.

  4. #4
    Join Date
    Jul 2007
    Posts
    2

    Default Re: Incurred New Debt During Chapter 13 Repayment Plan

    Thank you both for your input. I have the cash to pay the debt in full, and intend to do so immediately and close the account. Thanks again.

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