Hello all, I've run into a car loan case in which the applicant is currently making payments for Chapter 13 bankruptcy. After her interview, she discovered language in her Chapter 13 document (filed in U.S. Bankruptcy Court, District of Hawaii, p.6 under "C. Debtor's Duties") stating:
"...Debtor shall not incur any new debt exceeding $1,000 without the prior written approval of Trustee or order of the court." The circumstances of this applicant's case can make a good case for loan approval from a Ways to Work perspective. She says she can't afford any attorney fees if that's what's needed to ask permission from the Trustee. My questions: 1. What's the procedure for asking permission from the Trustee? 2. Are there any loopholes around this? 3. Purely for informational purposes, what would be the consequences to lender and borrower if a loan is obtained without permission? Thank you, Dave Washburn Consuelo Foundation
