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I am currently in a Chapter 13 bankruptcy. Can I apply for a medical loan for a surgery I need?

Frackville, PA |

I need to get a medical loan for a $12,000 procedure I plan on getting. I have one year left in my Chapter 13 bankruptcy.

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Attorney answers 4


You need to consult with your bankruptcy attorney. Taking on new debt during a chapter 13 generally requires you to obtain court permission.


Check your plan as well. Our model plan requires court approval for debt of more $5,000. Your bankruptcy attorney can tell you more.


Most likely you will need to obtain court approval. Consult with your attorney and your plan.

Disclaimer: This Post does not constitute legal advice and does not create an attorney-client relationship. Do not act, fail to act or otherwise rely on this Post. Consult an attorney licensed in your jurisdiction.


I would add that one of the reasons court approval is required, in part, is for your protection. Chances are good that you will need to agree to less than favorable terms to obtain a loan will still in an active Chapter 13 bankruptcy. By obtaining court approval, the theory is that its been reviewed and that the reviewing court would not allow the new credit if the terms are unreasonable.

Entering into a loan agreement with an active Chapter 13 Debtor is risky for the lender. Although this would be a post-petition debt and not included in the Chapter 13 case, if you were to convert to Chapter 7 for any reason (a change of circumstances beyond your control which positions you to qualify for Chapter 7), you get an opportunity to include any debts which came into existence from the filing of the Chapter 13 to the conversion to Chapter 7.

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