Whether you can get a loan during bankruptcy depends on your unique circumstances.
Credit You Might Need During Bankruptcy
When you file for bankruptcy, you don’t stop needing money to live day-to-day. There are many reasons why you might need a loan or credit for new, unexpected, or necessary expenses, such as the following:
- New car.
- Credit cards
- Student loan –you or a spouse or child may need a student loan to finance educational pursuits
- Loan for purchase of home
- Refinance of mortgage loan on existing residence
- Medical expenses — If you get sick or need to visit your doctor for medical services, the medical costs are considered new debt.
- Taxes — Your taxes still have to be paid, even while you’re in bankruptcy. Any taxes you owe at the end of the year will be new debt that is generally not part of the chapter 13 plan.
- Emergency expenses — Some things just can’t wait. For example, if your roof is leaking, it must be repaired.
Will I Need Approval from a Court to Get Credit During Bankruptcy in the Eastern District of North Carolina?
There are two local rules of bankruptcy procedure to be aware of if you file a Chapter 13 case in the Eastern District of North Carolina.
(5) Post-Petition debt. After the filing of the petition and until the plan is completed, a debtor shall not incur additional debt of $12,000 or more without prior approval from the court. The debtor shall file an application to incur the debt with a fourteen-day notice to the chapter 13 trustee. If no objection is filed, the court may approve the application without a hearing.
(6) Post-Petition purchases. After the filing of the petition and until the plan is completed, a debtor shall not purchase any item of property of $12,000 or more with non-exempt assets without prior approval from the court. The debtor shall file an application to purchase property with a fourteen-day notice to the chapter 13 trustee. If no objection is filed, the court may approve the application without a hearing.
Which Companies Would Approve Credit After Knowing I’m in Bankruptcy?
Fortunately, many lenders offer loans or other financial alternatives to individuals in bankruptcy. However, there are usually trade-offs, such as higher interest rates, fees, deposits, or collateral.
Contact a Bankruptcy Attorney for Help
For over over 25 years, the Sasser Law Firm has been helping individuals and businesses through Chapter 7, 11, and 13 bankruptcy. Our legal team takes on challenging cases. Contact us today for a free consultation with one of attorneys.