Legal Question in Bankruptcy in Michigan

We filed for bankruptcy chapter 13 last year in November of last year. We didn't have the money to pay back a creditor that sued us and had started garnishing our wages. We have a profit sharing account that we knew we could borrow from in Aug of 2014 but couldn't afford to be garnished until that happened. We would have lost our home. So, we filed for chapter 13. This is a 100 % repayment plan. We will pay every cent back to our creditors. We didn't realize we had to get the courts permission to take out a profit sharing loan, BUt now have the money. What can we do? Will our case be dismissed? Can we pay it back in full and be done?


Asked on 7/22/14, 1:00 pm

1 Answer from Attorneys
Charles Schneider Charles Schneider, P.C.

This is best addressed by your current attorney. Many chapter 13 plans have a provision that requires court approval to incur a debt during the course of the chapter 13. In the Eastern District of Michigan it has been for loans in excess of either $1,000 or $2,000. It is unlikely that your case will be dismissed for your violation if you maintain your payments on the 0 plan.

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Answered on 7/23/14, 8:08 am


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