Conyers, GA asked in Bankruptcy for Georgia

Q: Will the court allow me to take out a TSP loan to help catch up on arrears while under chapter 13 bankruptcy?

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1 Lawyer Answer
Jeffrey William Narmore
Jeffrey William Narmore
  • Bankruptcy Lawyer
  • Pooler, GA
  • Licensed in Georgia

A: Good evening. You would be borrowing against a TSP loan and this would most likely be viewed as a request to incur a debt. The view on allowing this changes a lot from one jurisdiction to the next, including who decides to grant the request. For example, in the Southern District of Georgia the Chapter 13 Trustees decide in the first instance. If you are in another jurisdiction, check your confirmation order or local rules on the Court web site. If you had an attorney who helped you file your case, he or she should be willing to discuss this issue and give you some guidance. If you are not represented, your best course would be to find out whether your request needs to be sent to the Trustee or Court. Ask what information they need but be prepared to explain how much you need to borrow, for what purpose, repayment terms (how much per month for how long) and demonstrate that repayment of the loan will not interfere with your ability to make bankruptcy payments and pay other bills. I hope this helps, and wishing you luck.

Bruce Alexander Minnick agrees with this answer

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