Can I incur new debt in a Chapter 13 Florida Bankruptcy?

The answer is normally, no. Once the bankruptcy case is filed, the debtor(s) usually needs to get the Trustee's permission before he or she can incur additional debt. This includes new credit cards, vehicles, homes, and vacations. The reason being is the idea behind a chapter 13 is that all disposable income should be paid out to secured and unsecured creditors in the form of one payment that is administered by the Chapter 13 Trustee. If the debtor(s) try and incur new debt, that will affect the plan payment being made every month because now there is an additional or, in some cases, a reduction in expenses. If there is a reduction in expenses, the plan payments may go up.

Read more detail on Recent Bankruptcy Posts –

Legal notice about the Can I incur new debt in a Chapter 13 Florida Bankruptcy? rubric : Hukuki Net Legal News is not responsible for the privacy statements or other content from Web sites outside of the site. Please refer the progenitor link to check the legal entity of this resource hereinabove.

Do you need High Quality Legal documents or forms related to Can I incur new debt in a Chapter 13 Florida Bankruptcy??

This entry was posted in Bankruptcy Law and tagged , , , , . Bookmark the permalink.

One Response to Can I incur new debt in a Chapter 13 Florida Bankruptcy?

  1. Erika says:

    When You Have to File For Bankruptcy, by Matt Pelc, is a helpful, easy read. It’s a book that pentairs to a variety of readers from those of us who are simply in credit card debt to those who are in complete financial disparity. The greatest part of this book is how it caters to its readers. A reader has easy access to the chapter he or she needs and can go straight to filing for chapter 7 bankruptcy if they wish.The book is simple and concise for a few reasons. It is set up to take you through the steps of evaluating your debt, considering filing, actually filing and recovering from filing. It explains confusing legal terms and ideas like the difference between chapters 7 and 13. I also found some very helpful tools in the book, like a Web site to retrieve your free credit report.Pelc uses the Johnson family and others as sample people filing for bankruptcy to make it simpler. He shows their fake income and fake debt that can be complicated and relative to everyday debtors.In my opinion, the best part of the book is the chapter that describes the different types of bankruptcy in layman’s terms. Pelc does a good job of making an unfamiliar and unpleasant subject easier to deal with. He also does a good job of letting the reader know that bankruptcy is common in 2007 over 800,000 people declared bankruptcy. The last part of the book was wordy and possibly could’ve been a single chapter on rebuilding credit and recovering. Overall I give the book four out of 5 stars because I found it very helpful and easy to read.

Leave a Reply