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What do I do if I want to borrow money while I am in a chapter 13 bankruptcy?


People often want to replace a car that has died, get a new heating system, or get some other necessity while they are in a chapter 13 bankruptcy, and they need to borrow the money. If you want to borrow money while you have an active chapter 13 bankruptcy, then you need to get a copy of the terms of the proposed loan from the lender (the Good Faith Estimate should have most of the terms of the loan) and give it to your attorney. He will have to file a motion to incur debt for you, which may take 30 days or so to have approved. The bankruptcy trustee usually will consent unless the loan is for an unnecessary purpose or in an amount that is excessive, given your ability to pay and given the fact that you are in bankruptcy and may not be paying all of your creditors 100% under your plan. If the bankruptcy trustee consents, then you should get your loan.

The SC Courts have

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