Once your Chapter 13 Bankruptcy Plan is approved by the Oregon Bankruptcy Court, a Confirmation Order is entered. Among other things, the Confirmation Order bars you from taking on any credit obligations during the pendency of your case without the Oregon Chapter 13 Bankruptcy Trustee’s written approval. There are only two exceptions to obtaining prior written approval for taking out credit. In the event of emergency no written approval is required. Similarly, no written approval is requried for run of the mill expenses for a business approved in your plan
Normally 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 a car loan. Contact your lawyer if you want to take on a car loan. Car dealers will attempt to talk you into anything before your attorney has had a chance to get involved. The Trustee will almost alway approve requests to finance vehicles, provided that the proper procedures are followed and the car loan itself meets certain guidelines.