After individuals go through a bankruptcy filing many will question when they will be able to get credit again. In the case of a Chapter 7 bankruptcy, it's as soon as creditors will take a risk on the post-bankruptcy filer again. On the other hand, it's a little more complicated with a Chapter 13 bankruptcy. A Chapter 13 bankruptcy normally takes a minimum of three years and up to five years to complete the court ordered payment plan. Due to the length of time that a debtor is tied up in a Chapter 13 payment plan, there are good odds that the individual may run into unplanned expenses during the bankruptcy. It could be as simple as making unexpected expensive repairs on their home, like replacing a roof or a water leak, or it might be in the best interest for the debtor to purchase a new car.
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The problem is, the debtor is not allowed to incur any new debt during the Chapter 13 bankruptcy. If any creditors allowed you to keep a credit card, which is highly unlikely, you are not allowed to incur any new debt on that account. The debtor is not allowed to go out and get new credit cards either.
However, with permission from the bankruptcy court, the debtor might be able to get an exception to the rule. The bankruptcy attorney will need to file a motion with the court, asking for permission to incur new debt. Depending on the reasons, the bankruptcy court will decide whether or not financing can be obtained. Before going through the hassle and extra expense of having your bankruptcy attorney file a motion, find out if there is anything else that can be possibly worked out to get the work done.
Sometimes, the individual's bankruptcy attorney can work out something creative with the court to temporarily suspend the Chapter 13 bankruptcy payments so the emergency can be taken care of. Depending on the length of the plan, it could increase the length of time to finish the payment plan and get the Chapter 13 bankruptcy discharge. This can cause some unusual circumstances to occur if the Chapter 13 plan is already five years. In most cases, if approved by the court, months would be added to the end of the bankruptcy plan.
When making the decision to get financing of any kind, take the time to explore all your options after speaking with your bankruptcy attorney. If it is at all possible it's best to try and get through without adding any debt. The debt is what got you in trouble in the first place and finishing the Chapter 13 bankruptcy plan in a timely fashion is very important to be successful with your future finances. The quicker you can get things paid off, you'll be on your way to becoming debt-free. After receiving your bankruptcy discharge it will soon become an image in your rear view mirror that you're driving away from.
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