Lakewood, CA asked in Bankruptcy for California

Q: I am 2 years into a chapter 13 bankruptcy in California . I have run up some more personal loan debt. Can i do a loan

consolidation or do i need to call him and tell him?

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2 Lawyer Answers

A: You cannot borrow money while in a chapter 13 without court approval. I suggest you meet with your attorney to discuss the possibility of modification to your plan since you apparently are not handling your finances based upon the monthly budget you created two years ago when the case was filed. Things do change while in a chapter 13 and the option of modification is available - or consideration of conversion to 7. Also, new debt incurred during the case is very limited which is also designated in the order confirming the plan usually. If you don't have an attorney, I urge you to meet with an experienced chapter 13 bankruptcy attorney to review your situation. Many of us offer a 1/2 hour no charge consult.

Peter Maurice Lively agrees with this answer

A: You should advise the trustee of the new debt, amend your plan and seek court approval to incur more debt.

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