Frequently asked questions.

Do I have to go to court?

When will my debts be discharged?

Do I have to pay my debts until I receive a Discharge?

Why am I required to complete Credit Counseling?

How quickly can I file a bankruptcy case?

Does my husband or wife have to file also?

Will my filing hurt my husband’s or wife’s credit?

Am I allowed to file bankruptcy if I filed before?

How can I find a good bankruptcy attorney?

Can bankruptcy help me with my tax debt?

4 Comments

  1. tammy
    Posted March 3, 2015 at 12:12 pm | Permalink

    When I file ch13 can I throw in past due rent for current landlord?

  2. robert
    Posted March 5, 2015 at 2:49 am | Permalink

    Your question does not give me enough information to answer yes or no. I can give you a scenario where you would be able to cure the rental arrears after filing a chapter 13 case and another scenario in which curing the arrears after filing could not be done to stay in the home.

    First scenario: At the time of filing a chapter 13 case, the debtor and landlord are parties to a 3 year lease with 2 years remaining in the lease, but the debtor is behind 3 months in his/her rent. In this case, the debtor could 1) assume the lease, 2) propose to cure the arrears over a reasonable period of time (the reasonable period would have to be significantly less than the remaining 2 years on the lease, probably between 6 months and one year), and 3) make timely payments on all lease payments due after the filing of the case.

    However, if your question is could the debtor file the chapter 13 case and discharge the 3 months arrears and make no payments on the back rent, then the answer is that cannot be done.

    Second scenario: At the time of filing the the lease is a two year lease, but the final month of the lease is only two months away. In this case, the debtor cannot force a landlord to extend a lease term past the end of the two year lease. This would be the case even if the debtor cured the arrears by paying the entire 3 months back rent immediately after filing the case. However, the back rent can be discharged in a chapter 7 or 13 unless the debt is nonchargeable because it was incurred by fraud or other reasons that any debt would be nonchargeable. If the debtor seeks to discharge the back rent, then he/she cannot assume the lease to stay in the home.

    The answer would be basically the same if the lease was a month to month lease at the time of the filing of the case.

  3. Shaye
    Posted April 6, 2015 at 10:30 pm | Permalink

    Hello! If I am currently in chapter 13 bankruptcy (5 year plan), is it possible for me to apply for a “secured” credit card?

  4. robert
    Posted April 7, 2015 at 6:38 am | Permalink

    Shaye,

    Chapter 13 of the Bankruptcy Code has two provisions that talk about incurring debt while in a chapter 13 case. One provision [§ 1328(d)] allows the Court to limit the debtor’s ability to discharge the new debt if prior approval was not obtained from the trustee, and the other [§ 1305(c)] grants the Court the authority to disallow a claim filed by the lender on the new debt.

    As a result of the above provisions, most creditors will not loan any funds with out prior approval of the Trustee or the Bankruptcy Court. In our jurisdiction, the some of our trustees will not grant permission to incur any new debt, thus the attorney for the debtors must file a motion to incur the new debt and in most cases, send notice to all creditors before the Court can rule on the motion. As I understand, in some jurisdictions around the country, debtors only need the approval of the trustee.

    One of our trustees will approve small loans without requiring the motion, usually less than $2,000.00, if that trustee believes that the loan is necessary for the debtor. An example would be a small loan to repair the debtor’s auto which the debtor must have to travel to and from work, etc.

    I cannot tell you what the trustee or court where you live would do if you made a request to acquire a secured VISA or secured Mastercard. My belief is that the only way that permission to obtain this type of credit would be granted only if the debtor has a specific need for the credit card for auto rentals or travel expenses because of his/her job or operation of his business.

    You really need to contact your attorney to find out what type of credit the Trustee or the Court would approve where you live.

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