How to Get a Personal Loan While in Chapter 13

Wondering how to get a personal loan while in Chapter 13 bankruptcy? There might be a way.

The Bankruptcy Code permits consumers to take on new debt while in Chapter 13 bankruptcy. However, in most situations, you must get written permission from the Bankruptcy Judge or the Chapter 13 Trustee.

Some acceptable loans for people in bankruptcy may include:

• A personal car loan
• Medical expenses
• Settling a tax bill

Dealing with financial challenges during bankruptcy can be tough, but there are solutions available. Instead of a personal loan, you may consider looking into other credit options.

If your situation is temporary, it’s wise to talk to your bankruptcy attorney about restructuring your debt repayments.

But you’ve lost your job and need long-term financial assistance, you may need to adjust your repayment plan. In this case, file a motion with the court to request the modification.

Remember that courts can only reduce your debt repayments for unsecured non-priority debt, such as medical bills, personal loans, and credit card payments.

You won’t be able to reduce monthly payments for secured debt like car loans and mortgages.

To increase your chances of the court allowing you to obtain additional credit, demonstrate that you need it to stay on track with your plan.

For example, if you need a reliable car to get to work, explaining this requirement can strengthen your case.

If you decide to take on a personal loan, inform your attorney and the court, wait for legal approval, and get one that perfectly fits your current financial situation with LoanFinder™️.