Can I draw some money from my home principle and pay back after filing a chapter thirteen? 14 Answers as of March 11, 2014

I filled for a chapter 13 few years ago. I am in need of some cash. Can I draw from my home principle and pay back?

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GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Yes. Title to the property vests back in the debtor once you have a confirmed Chapter 13. Sometimes the creditor (making the loan) will want permission from the Chapter 13 Trustee to do the loan. But if you already have a home equity loan on the home, you can draw money on that line of credit.
Answer Applies to: Colorado
Replied: 3/10/2014
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You need a court order to borrow funds.
Answer Applies to: California
Replied: 3/11/2014
A Fresh Start
A Fresh Start | Dorothy G Bunce
Not unless you first get court approval. You may also find most lenders unwilling to enter into this transaction with you. Since 100% of your disposable income is supposed to be going to pay your existing creditors, I wonder where you will be able to find the money to repay an additional debt secured by your home.
Answer Applies to: Nevada
Replied: 3/10/2014
Law Offices of Daniel J Winter
Law Offices of Daniel J Winter | Daniel J Winter
If you are still in Chapter 13, you need to talk to your lawyer, because to get any kind of loan, you need court permission. That said, your lawyer will need to review your case to see if it is possible to do, based on your plan. If you don't have a lawyer, get one.
Answer Applies to: Illinois
Replied: 3/10/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If you are still in a chapter 13, you would need permission from the courts to refinance to withdraw any money.
Answer Applies to: New York
Replied: 3/10/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    If you are still in Chapter 13, you may not incur new debt without the trustee's permission. "Drawing money from your home" is a fallacy, you are borrowing money and pledging your home equity as collateral. If you are no longer in Chapter 13, there are no bankruptcy rules to hinder you but you should still make sure you have the means to pay it back, because you have several years before you can file bankruptcy again.
    Answer Applies to: Oregon
    Replied: 3/7/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You cannot incur any new debt while in a 13 without court approval. Your "borrowing" money against your house would require approval. If borrowing these funds and the resulting monthly payment affects your distribution to creditors under the plan then you will not be given permission to enter into the loan. This information is only intended to give general information in response to an inquiry. It does not establish an attorney client relationship. This response is only based upon the limited facts presented and is merely intended to assist you in determining if you should contact an attorney to provide you with legal advice.
    Answer Applies to: Nevada
    Replied: 3/7/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    You cannot incur additional debt while you are in an active chapter 13 case without getting prior approval from the Court.
    Answer Applies to: Indiana
    Replied: 3/7/2014
    Law Office of Shawn N. Wright | Shawn N. Wright
    If you are currently in a Chapter 13 case, then you can't borrow money without getting Bankruptcy Court approval. No bank would lend to you if they knew you were in bankruptcy. But if you do get court approval, then you'll have to make arrangements to repay it.
    Answer Applies to: Pennsylvania
    Replied: 3/7/2014
    Stittleburg Law Office
    Stittleburg Law Office | Bernd Stittleburg
    You need court permission.
    Answer Applies to: Georgia
    Replied: 3/7/2014
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Given that 1) you are not allowed to incur additional debt while in a Chapter 13 without approval and 2) most lenders will not lend to you while you are in Chapter 13 and not without court approval, probably unlikely.
    Answer Applies to: California
    Replied: 3/7/2014
    Robert S. Payne, Utah Bankruptcy Attorney
    Robert S. Payne, Utah Bankruptcy Attorney | Robert S. Payne
    Yes, but if you are in a chapter 13, you need court approval before you borrow any money. Contact your attorney so that he can file a motion to approve (whatever financing you're doing).
    Answer Applies to: Utah
    Replied: 3/7/2014
    Danville Law Group | Scott Jordan
    You will need to make a motion to borrow and explain to the Judge why you need the money. If the Judge approves the motion, you can then borrow money.
    Answer Applies to: California
    Replied: 3/7/2014
    Patrick W. Currin, Attorney at Law | Patrick Currin
    If you are still in Chapter 13 you need the trustee's permission to buy, sell or encumber.
    Answer Applies to: California
    Replied: 3/7/2014
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