If the client is still in Chapter 13, I didn't think it was permissible by National WtW policy to make a loan, for one reason because the client could add the loan to her bankruptcy after closing, and you would have no recourse as far as collecting it.
Dave Dougherty Huntsville, AL ----- Original Message ----- From: "Dave Washburn" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Friday, December 12, 2003 1:47 PM Subject: [WTW] Chapter 13 bankruptcy > 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 > >
