Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney here to assist you.
Are you in a Chapter 11 or 13? A Chapter 7 is not a repayment plan bankruptcy; it is a liquidation. Thanks for the information.
I am in 11, the one you have five years to pay back on vs. a 13. I think I had to go this route due to the income I had at the time. Sorry, I thought it was 7.
The trustee's letterhead says Chapter 13 Trustee on it.
Ok. Thanks. Usually a business files an 11 and an individual files a 13.
The rule is that you're not allowed to incur any new debt. IF you borrow money/use credit for a new TV, you are incurring new debt. Thus, you're going to have to file a motion with the court to borrow the money from your existing line of credit. As long as you can show that you're able to repay the money and that it will not impact your ability to make your plan payments, the court should approve it.
However, you are going to need to get court approval to be legal in doing this.
So to prevent all of this, I could just have a family member purchase the item and I can pay them back as I am not incurring any new debt or credit lines?
So to repeat back what you have just told me, we cannot use any existing credit lines in our names to make this purchase without prior court approval? If we do not get prior court approval, we risk some legal issues with the court or trustee correct?