Legal Question in Bankruptcy in Virginia

Using a credit card while in chapter 13 plan

We have recently filed a chapter 13 and have made our first payment to the trustee. WHile cleaning a drawer we cam across a crdit card my wife had applied for before we filed chapter 13. Can we use this card for an emergency or do we need special permission from the courts in order to own a credit card while paying into the plan ??? Thank you


Asked on 7/18/00, 11:17 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Using a credit card while in chapter 13 plan

You should not use the card. In the first place, it is likely cancelled, or soon will be. And any use will not be discharged, and it is likely it would be deemed fraudulent in the event you need to convert to Chap. 7, and thus not dischargeable. While you can legally incur debt while in Ch. 13 (some authorities say otherwise), it is unwise. You will end up using it to supplement your income while making plan payments, which will cause the debt to multiply, since all of your disposable income (income less *necessary* living expenses) is supposed to be paid into the plan.

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Answered on 9/12/00, 3:23 pm


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