There are many challenging aspects to a Chapter 13 bankruptcy in Kentucky. You have to develop, with your bankruptcy attorney, a viable Chapter 13 plan. The plan needs to be one that you can afford and pays all of your secured creditors and still leaves you enough money to buy gas for your car, and groceries for your table.
With a Chapter 13, you should think of your plan as a budget. You need to account for all of the spending you will need to do for the next three to five years. This may seem a little daunting, and it can be, but if you are successful, it will also have taught you the important skill of maintaining a budget.
Of course, there are always things that can occur that are unplanned, such as a car breaking down. If you need a new transmission in your car and you are operating in a Chapter 13 plan, you may not have the $2,000 in ready cash just lying around. You may need to obtain a credit card or, in the worst case, buy a new car.
But how can you obtain credit during a bankruptcy? It may be easier than you think. However, it may not be cheap. You will also have to obtain approval from the bankruptcy trustee, and you have to be current with all of your existing plan payments.
The court is likely to approve such a request, as most people need to have a working vehicle to keep their jobs, which they need to fund the Chapter 13 plan.
You should discuss this with your bankruptcy attorney and make any changes necessary to ensure that you can successfully complete your bankruptcy.
Source: Auto Credit Express Blog, “Acquiring New Debt During Chapter 13 Bankruptcy,” Steve Cypher, October 14, 2013