In Oregon, the Confirmation Order signed by the Bankruptcy Judge approving your Chapter 13 Plan, specifies that you should not incur any credit obligations during the life of your plan without the Trustee’s written consent. The only times you can buy on credit without the Trustee’s written approval would be in an emergency(as you can imagine this is interpreted pretty narrowly) and in the case of ordinary expenses for a business approved in your plan.

Any request for credit must be approved by the Trustee in writing before you obligate yourself in any way. The most common credit obligation you may wish to incur is for the purchase of a car. Be sure to contact your attorney if you must buy a car or trade in your old one. Do not let a car dealer talk you into anything before your attorney has had a chance to get involved. The Trusteeconsistently approves requests to finance replacement or basic needs vehicles, so long as you and your attorney follow the proper procedure. The procedure simply calls for you to get the Trustee some pretty basic information on a form provided by your attorney and that obtainTrustee approval you commit to any car loan.

If you have any questions at all regarding how you can go about incurring credit during your Chapter 13 Bankruptcy, please feel free to contact Northwest Debt Relief anytime and ask for Tom McAvity so that we can go over your situation.

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